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Journal of Public Economics - University of California ...

Optimal minimum wage policy in competitive labor marketsDavid Leea, Emmanuel Saezb, aDepartment of Economics , Princeton University , industrial relations Section, Firestone Library A-16-J-1, Princeton, NJ 08544, USAbUniversity of California , department of Economics , 530 Evans Hall #3880, Berkeley, CA 94720, USAabstractarticle infoArticle history:Received 21 September 2011 Received in revised form 21 May 2012 Accepted 1 June 2012 Available online 9 June 2012 Keywords:Minimum wageOptimal taxationThis paper provides a theoretical analysis of optimal minimum wage policy in a perfectly competitive labormarket and obtains two key results.

Optimal minimum wage policy in competitive labor markets David Lee a, Emmanuel Saez b,⁎ a Department of Economics, Princeton University, Industrial Relations Section, Firestone Library A-16-J-1, Princeton, NJ 08544, USA b University of California, Department of Economics, 530 Evans Hall #3880, Berkeley, CA 94720, USA article info abstract Article history: ...

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