Minimum wage can be a good way to redistribute wealth in a competitive economy. A study shows that in certain conditions, it can be the best option when compared to taxes and lump-sum transfers. The key factor is how the demand for low skilled workers reacts to the minimum wage. This means that an optimal minimum wage is more likely when there are fewer low skilled workers, when different types of workers work well together, or when there isn't a big difference in productivity between workers. The study uses a new approach to model this, which can be expanded to include more complex dynamics in the future.