@TechReport{iza:izadps:dp8418, author={Blumkin, Tomer and Danziger, Leif}, title={Deserving Poor and the Desirability of a Minimum Wage}, year={2014}, month={Aug}, institution={Institute of Labor Economics (IZA)}, address={Bonn}, type={IZA Discussion Paper}, number={8418}, url={https://www.iza.org/publications/dp8418}, abstract={This paper provides a novel justification for using a minimum wage to supplement an optimal tax-and-transfer system. We demonstrate that if labor supply decisions are concentrated along the intensive margin and employment is efficiently rationed, a minimum wage can be socially beneficial by serving as a screening device that targets benefits to the deserving poor. We also show that with a minimum wage in place, a negative marginal tax rate may not be optimal.}, keywords={deserving poor;minimum wage;redistribution;efficient rationing;negative marginal tax rate}, }