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Προβολή εκδήλωσης

14.01.2022

Research Seminar 19/01/22: "Minimum Wages and Insurance within the Firm"

Abstract: Minimum wages alter the allocation of firm-idiosyncratic risk across workers. To establish this result, we
focus on Italy, and leverage employer-employee data matched to firm balance sheets and hand-collected wage
floors. We find a relatively larger pass-through of firm-specific labor-demand shocks into wages for the workers
whose earnings are far from the floors, but who are employed by establishments intensive in minimum-wage
workers. We study the welfare implications of this fact using an incomplete-market model. The asymmetric passthrough uncovers a novel channel which tilts the benefits of removing minimum wages toward high-paid employees
at the expense of low-wage workers.

 

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