DP950 Searching for the Virtues of the European Model
|Publication Date:||May 1994|
|Keyword(s):||Labour Market Flexibility, Minimum Wage, Unemployment|
|Programme Areas:||International Macroeconomics, Human Resources|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=950|
The distributional effects of the minimum wage are analysed in a model where skilled and unskilled labour enter the production function. It is argued that distributional goals are best achieved by letting the labour market clear and achieving redistribution through taxes and transfers.