The Optimal Minimum Wage for Poverty Minimization
The effects of a minimum wage on employment and on poverty have been studied in the literature. This paper characterizes the poverty minimizing minimum wage, and shows how it depends on productivity, inequality and the degree of labor market competitiveness.
WP 2008-21 November 2008JEL Classification Codes: D6; I32; J38; J64
Charles H. Dyson School of Applied Economics and Management, Cornell University
inequality; labor productivity; market competitiveness; minimum wage; poverty