TY  - RPRT
        AU  - Adamopoulou, Effrosyni
AU  - Manaresi, Francesco
AU  - Rachedi, Omar
AU  - Yurdagul, Emircan
        TI  - Minimum Wages and Insurance within the Firm
        PY  - 2021/Dec/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 14943
        UR  - https://www.iza.org/publications/dp14943
        AB  - 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.
        KW  - firm-specific shocks
KW  - pass-through
KW  - minimum wages
KW  - linked employer-employee data
KW  - general equilibrium
KW  - complementarities
        ER  -