TY  - RPRT
        AU  - Danziger, Eliav
AU  - Danziger, Leif
        TI  - A Pareto-Improving Minimum Wage
        PY  - 2014/Apr/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 8123
        UR  - https://www.iza.org/publications/dp8123
        AB  - 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.
        KW  - Pareto improvement
KW  - graduated minimum wage
        ER  -