Jump to ContentJump to Main Navigation
Show Summary Details
More options …

The B.E. Journal of Economic Analysis & Policy

Editor-in-Chief: Ludwig, Sandra / Schmitz, Hendrik

Ed. by Barigozzi, Francesca / Brunner, Johann / Fleck, Robert / Jürges, Hendrik / Mastrobuoni, Giovanni / Mendola, Mariapia / Requate, Till / de Vries, Frans / Wenzel, Tobias


IMPACT FACTOR 2018: 0.520
5-year IMPACT FACTOR: 0.556

CiteScore 2018: 0.54

SCImago Journal Rank (SJR) 2018: 0.356
Source Normalized Impact per Paper (SNIP) 2018: 0.394

Online
ISSN
1935-1682
See all formats and pricing
More options …
Volume 9, Issue 1

Issues

Volume 6 (2006)

Volume 4 (2004)

Volume 2 (2002)

Volume 1 (2001)

The Optimal Policy Combination of the Minimum Wage and the Earned Income Tax Credit

Miki Malul / Israel Luski
Published Online: 2009-11-20 | DOI: https://doi.org/10.2202/1935-1682.1953

Abstract

This paper evaluates the consequences of minimum wage (MW) and earned income tax credit (EITC) in a model with heterogeneous costs of investment in human capital. Our model studies the effects of a MW and an EITC on employment, productivity, and total output for two types of groups: those with a low cost of acquiring human capital and a long horizon of earnings (Type Ys); and those with a high cost of acquiring human capital and a short horizon of earnings (Type Os). We assume that Type Ys consider investing in human capital while Type Os have a certain predetermined level of human capital and do not consider changing it. Our model suggests that a government might consider imposing a MW exclusively for Type Y individuals and an EITC exclusively for Type O individuals. Some of the best effects of each policy would therefore be obtained and some of the worst consequences would be avoided.

Keywords: minimum wage (MW); earned income tax credit (EITC); human capital

About the article

Published Online: 2009-11-20


Citation Information: The B.E. Journal of Economic Analysis & Policy, Volume 9, Issue 1, ISSN (Online) 1935-1682, DOI: https://doi.org/10.2202/1935-1682.1953.

Export Citation

©2011 Walter de Gruyter GmbH & Co. KG, Berlin/Boston.Get Permission

Citing Articles

Here you can find all Crossref-listed publications in which this article is cited. If you would like to receive automatic email messages as soon as this article is cited in other publications, simply activate the “Citation Alert” on the top of this page.

[1]
[3]
Hila Axelrad, Miki Malul, and Israel Luski
Journal for Labour Market Research, 2018, Volume 52, Number 1
[4]
Miki Malul, Amir Shoham, and Moshfique Uddin
The International Journal of Human Resource Management, 2016, Volume 27, Number 20, Page 2531
[5]
Hila Axelrad, Israel Luski, and Miki Malul
Journal of Behavioral and Experimental Economics, 2016, Volume 60, Page 23
[6]
Liran Korn, Miki Malul, and Israel Luski
Journal of Employment Counseling, 2015, Volume 52, Number 3, Page 110
[7]
Miki Malul
Applied Economics Letters, 2015, Page 1
[8]
Hila Axelrad, Israel Luski, and Malul Miki
International Journal of Social Economics, 2013, Volume 40, Number 12, Page 1058
[9]
Dan Kaufmann and Miki Malul
European Planning Studies, 2015, Volume 23, Number 7, Page 1345
[10]
Hideaki Goto
Bulletin of Economic Research, 2012, Volume 64, Number 2, Page 192
[11]
Malul Miki and Fany Yuval
The Journal of Socio-Economics, 2011, Volume 40, Number 4, Page 412

Comments (0)

Please log in or register to comment.
Log in