Economics, Econometrics and Finance
4 years ago

Minimum wage boosts efficiency by pulling workers out of untaxed leisure.

The Journal of Policy Reform
An Efficiency Enhancing Minimum Wage
Ömer Gökçekuş, Edward Tower

Paper Summary

Related papers

Economics, Econometrics and Finance
2 years ago

Initial low wages predict slow career growth, study finds.

Firm Dynamics
Corporate Governance
Labor Dynamics
2 views
Economics, Econometrics and Finance
4 years ago

Minimum wage workers face high turnover and low wages, study finds.

Labor Dynamics
Employment Health Effects
Labor Relations
2 views
Economics, Econometrics and Finance
4 years ago

Italian wage policies drive upward mobility and wage flexibility for workers.

Development in Italy
Labor Dynamics
Firm Dynamics
2 views

In an economy with a tax on labor earnings, having a slightly higher minimum wage in one sector can actually make things more efficient. This higher minimum wage attracts better workers to that sector, while most displaced workers find jobs in other sectors, increasing overall employment. This shift from leisure to work doesn't really hurt efficiency, and it also brings in more tax revenue. So, having a slightly higher minimum wage can help get more people working and improve efficiency in the economy.