This paper provides a theoretical analysis of optimal minimum wage policy in a perfectly competitive labor market. We show that a binding minimum wage -- while leading to unemployment -- is ...

We show that when the assumption of perfectly competitive labor markets underlying this theory is relaxed, minimum wages can increase training of affected workers, by inducing firms to train their ...

It assumes that labor markets are perfectly competitive, meaning that workers ... s 2020 paper, they suggest that increased company market power may result in reduced wage shares in developed ...