@TechReport{iza:izadps:dp8123,
            	author={Danziger, Eliav and Danziger, Leif},
            	title={A Pareto-Improving Minimum Wage},
            	year={2014},
	month={Apr},
            	institution={Institute of Labor Economics (IZA)},
            	address={Bonn},
            	type={IZA Discussion Paper},
            	number={8123},
            	url={https://www.iza.org/publications/dp8123},
	abstract={This paper shows that a graduated minimum wage, in contrast to a constant minimum wage, can provide a strict Pareto improvement over what can be achieved with an optimal income tax. The reason is that a graduated minimum wage requires high-productivity workers to work more to earn the same income as low-productivity workers, which makes it more difficult for the former to mimic the latter. In effect, a graduated minimum wage allows the low-productivity workers to benefit from second-degree price discrimination which increases their income.},
	keywords={Pareto improvement;graduated minimum wage},
            }