@TechReport{iza:izadps:dp11386,
            	author={Danziger, Eliav and Danziger, Leif},
            	title={The Optimal Graduated Minimum Wage and Social Welfare},
            	year={2018},
	month={Mar},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={11386},
            	url={https://www.iza.org/publications/dp11386},
	abstract={This paper analyzes the effects of introducing a graduated minimum wage in a model with optimal income taxation in which a government seeks to maximize social welfare. It shows that the optimal graduated minimum wage increases social welfare by increasing the low-productivity workers' consumption and bringing it closer to the first-best. The paper also describes how the graduated minimum wage in a social welfare optimum depends on important economy characteristics such as the government's revenue needs, the social-welfare weight of low-productivity workers, and the numbers and productivities of the different types of workers.},
	keywords={graduated minimum wage;optimal income taxation;social welfare},
            }