%0 Report %A Danziger, Eliav %A Danziger, Leif %T A Minimum Wage May Increase Exports and Firm Size Even with a Competitive Labor Market %D 2024 %8 2024 Mar %I Institute of Labor Economics (IZA) %C Bonn %7 IZA Discussion Paper %N 16846 %U https://www.iza.org/index.php/publications/dp16846 %X This paper explores how a minimum wage affects a firm's behavior with a competitive labor market and an uncertain export cost. The model provides several novel insights which are consistent with recent empirical evidence. Thus, a minimum wage increases an exporter's foreign-market size and may cause a non-exporter to start exporting. The foreign-market size may increase so much that, although the home-market size decreases, the overall firm size increases. %K exports %K minimum wage %K firm size