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- W3171992610 abstract "We study a labor market where firms have private information about their ex-ante heterogeneous productivities and search is random. In this environment, a binding minimum wage can be efficiency-enhancing - we show that setting it using a version of the Vickery-Clarke-Groves mechanism delivers full efficiency. In a dynamic, stochas-tic version of the model calibrated to the Routine Manual labor market in the U.S., our proposed mechanism generates sizeable welfare gains. The resulting minimum wage is procyclical, dampening the response of unemployment to aggregate shocks." @default.
- W3171992610 created "2021-06-22" @default.
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- W3171992610 date "2017-11-09" @default.
- W3171992610 modified "2023-10-18" @default.
- W3171992610 title "Optimal Design and Quantitative Evaluation of the Minimum Wage" @default.
- W3171992610 hasPublicationYear "2017" @default.
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