TY  - RPRT
        AU  - Danziger, Eliav
AU  - Danziger, Leif
        TI  - The Optimal Graduated Minimum Wage and Social Welfare
        PY  - 2018/Mar/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 11386
        UR  - https://www.iza.org/publications/dp11386
        AB  - 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.
        KW  - graduated minimum wage
KW  - optimal income taxation
KW  - social welfare
        ER  -