Is the Minimum Wage an Effective Response to Income Inequality?

摘要

Based on public choice theory, the authors argue that states with more unequal incomes will redistribute revenues through higher taxes. But the facts suggest otherwise. A higher minimum wage can be a better answer to calls for more redistribution, and the data bear this out. A higher minimum wage will reduce inequality because the distance between median and average incomes will narrow. Inequality, then, becomes another argument in favor of a substantial minimum wage.