%0 Report
        %A Danziger, Eliav
%A Danziger, Leif
        %T The Optimal Graduated Minimum Wage and Social Welfare
        %D 2018
        %8 2018 Mar
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 11386
        %U https://www.iza.org/publications/dp11386
        %X 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.
        %K graduated minimum wage
%K optimal income taxation
%K social welfare