TY - RPRT AU - Blumkin, Tomer AU - Danziger, Leif TI - Deserving Poor and the Desirability of a Minimum Wage PY - 2014/Aug/ PB - Institute of Labor Economics (IZA) CY - Bonn T2 - IZA Discussion Paper IS - 8418 UR - https://www.iza.org/publications/dp8418 AB - 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. KW - deserving poor KW - minimum wage KW - redistribution KW - efficient rationing KW - negative marginal tax rate ER -