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Income Taxation and Wage Policy: An Application to Minimum Wage

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  • Tomer Blumkin
  • Efraim Sadka

Abstract

In this paper, we explore how the government can play a role in affecting the compensation policies of private firms in a manner that complements its income tax policies. We illustrate how this role of the government can be served by minimum wage legislation. Copyright Springer Science + Business Media, Inc. 2005

Suggested Citation

  • Tomer Blumkin & Efraim Sadka, 2005. "Income Taxation and Wage Policy: An Application to Minimum Wage," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 12(6), pages 713-722, November.
    • Handle: RePEc:kap:itaxpf:v:12:y:2005:i:6:p:713-722
    DOI: 10.1007/s10797-005-0412-0
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    References listed on IDEAS

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    5. Brown, Charles & Gilroy, Curtis & Kohen, Andrew, 1982. "The Effect of the Minimum Wage on Employment and Unemployment," Journal of Economic Literature, American Economic Association, vol. 20(2), pages 487-528, June.
    6. Diamond, Peter A & Mirrlees, James A, 1971. "Optimal Taxation and Public Production: I--Production Efficiency," American Economic Review, American Economic Association, vol. 61(1), pages 8-27, March.
    7. Stiglitz, Joseph E., 1982. "Self-selection and Pareto efficient taxation," Journal of Public Economics, Elsevier, vol. 17(2), pages 213-240, March.
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    9. Riley, John G, 1979. "Informational Equilibrium," Econometrica, Econometric Society, vol. 47(2), pages 331-359, March.
    10. David Neumark & William Wascher, 1994. "Minimum Wage Effects and Low-Wage Labor Markets: A Disequilibrium Approach," NBER Working Papers 4617, National Bureau of Economic Research, Inc.
    11. David Neumark & William Wascher, 1992. "Employment Effects of Minimum and Subminimum Wages: Panel Data on State Minimum Wage Laws," ILR Review, Cornell University, ILR School, vol. 46(1), pages 55-81, October.
    12. Balcer, Yves & Sadka, Efraim, 1982. "Horizontal equity, income taxation and self-selection with an application to income tax credits," Journal of Public Economics, Elsevier, vol. 19(3), pages 291-309, December.
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    Citations

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    Cited by:

    1. Danziger, Eliav & Danziger, Leif, 2018. "The Optimal Graduated Minimum Wage and Social Welfare," IZA Discussion Papers 11386, Institute of Labor Economics (IZA).
    2. Lee, David & Saez, Emmanuel, 2012. "Optimal minimum wage policy in competitive labor markets," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 739-749.
    3. David S. Lee & Emmanuel Saez, 2008. "Optimal Minimum Wage Policy in Competitive Labor Markets," Working Papers 1105, Princeton University, Department of Economics, Industrial Relations Section..
    4. Weiguang Liu, 2018. "The Self-Ful?lling Discriminations and Mismatches for Old Workers and Poor Workers," Applied Economics and Finance, Redfame publishing, vol. 5(1), pages 58-74, January.
    5. Lee, David & Saez, Emmanuel, 2012. "Optimal minimum wage policy in competitive labor markets," Journal of Public Economics, Elsevier, vol. 96(9-10), pages 739-749.
    6. Eliav Danziger & Leif Danziger, 2018. "The Optimal Graduated Minimum Wage and Social Welfare," CESifo Working Paper Series 6943, CESifo.
    7. Eliav Danziger & Leif Danziger, 2015. "A Pareto-improving Minimum Wage," Economica, London School of Economics and Political Science, vol. 82(326), pages 236-252, April.
    8. repec:pri:cepsud:178lee is not listed on IDEAS
    9. Danziger, Eliav & Danziger, Leif, 2018. "The Optimal Graduated Minimum Wage and Social Welfare," GLO Discussion Paper Series 188, Global Labor Organization (GLO).
    10. George Economides & Thomas Moutos, 2014. "Minimum Wages as a Redistributive Device in the Long Run," CESifo Working Paper Series 5052, CESifo.
    11. Blumkin, Tomer & Danziger, Leif, 2014. "Deserving Poor and the Desirability of a Minimum Wage," IZA Discussion Papers 8418, Institute of Labor Economics (IZA).

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