DP2452 The Role Of The Minimum Wage In The Welfare State: An Appraisal
|Author(s):||Juan J. Dolado, Florentino Felgueroso, Juan F Jimeno|
|Publication Date:||May 2000|
|Keyword(s):||Employment, Inequality, Minimum Wages|
|Programme Areas:||Labour Economics|
|Link to this Page:||www.cepr.org/active/publications/discussion_papers/dp.php?dpno=2452|
In order to offer a balanced assessment of the role of minimum wages in the Welfare State, seven basic questions need to be answered: (i) Why is the minimum wage a useful redistributive tool?; (ii) How binding are minimum wage floors in different countries?; (iii) To what extent do minimum wages have the adverse consequences that standard analysis predict?; (iv) Are there strong theoretical grounds underlying the revisionist results?; (v) Who supports minimum wages?; (vi) Under which conditions is the minimum wage a better tool than other policy instruments to achieve income redistribution?; and, finally, (vii) What is the overall cross-country time-series evidence regarding the employment effect of the minima? The aim in this paper is to provide an appraisal on the available evidence for each of the above-mentioned issues.