Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: When do Minimum Wages Increase Social Welfare? A Sufficient Statistics
  Analysis with Taxes and Transfers   This paper characterizes optimal redistribution for a social planner with
three instruments: labor income taxes and transfers, corporate income taxes,
and a minimum wage. The modeled economy features search-and-matching frictions,
generates positive firm profits in equilibrium, and accommodates empirically
relevant effects of the minimum wage such as wage spillovers and reallocation
effects. I find that minimum wages are more likely to be desirable when
corporate taxes are low because minimum wages generate corporate revenue losses
and redistribute from capitalists to low-skill workers. Minimum wages can
improve welfare even under optimal income taxes by shifting tax incidence when
wages bunch at the minimum. I estimate the sufficient statistics that guide the
welfare analysis using state-level variation in minimum wages. I find that
minimum wages have increased low-skill workers' welfare with null effects on
high-skill workers and negative effects on capitalists. Results suggest that,
under current corporate tax rates, weak social preferences for redistribution
toward low-skill workers would justify small state-level minimum wages
increases.

31
The categories of this paper are: ao-sci
29
The categories of this paper are: funct-an
22
The categories of this paper are: chao-dyn
13
The categories of this paper are: quant-ph
21
The categories of this paper are: adap-org
23
The categories of this paper are: solv-int
3
The categories of this paper are: physics
9
The categories of this paper are: nlin
27
The categories of this paper are: comp-gas
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The categories of this paper are: supr-con
35
The categories of this paper are: mtrl-th
34
The categories of this paper are: chem-ph
30
The categories of this paper are: q-alg
33
The categories of this paper are: plasm-ph
7
The categories of this paper are: hep-th
15
The categories of this paper are: nucl-ex