%0 Report
        %A Adamopoulou, Effrosyni
%A Manaresi, Francesco
%A Rachedi, Omar
%A Yurdagul, Emircan
        %T Minimum Wages and Insurance within the Firm
        %D 2021
        %8 2021 Dec
        %I Institute of Labor Economics (IZA)
        %C Bonn
        %7 IZA Discussion Paper
        %N 14943
        %U https://www.iza.org/publications/dp14943
        %X Minimum wages alter the allocation of firm-idiosyncratic risk across workers. To establish this result, we focus on Italy, and leverage employer-employee data matched to firm balance sheets and hand-collected wage floors. We find a relatively larger pass-through of firm-specific labor-demand shocks into wages for the workers whose earnings are far from the floors, but who are employed by establishments intensive in minimum-wage workers. We study the welfare implications of this fact using an incomplete-market model. The asymmetric passthrough uncovers a novel channel which tilts the benefits of removing minimum wages toward high-paid employees at the expense of low-wage workers.
        %K firm-specific shocks
%K pass-through
%K minimum wages
%K linked employer-employee data
%K general equilibrium
%K complementarities