Optimal Minimum Wage Policy in Competitive Labor Markets

David Lee, Princeton University; Emmanuel Saez, UC Berkeley

Abstract

This paper provides a theoretical analysis of optimal minimum wage policy in a perfectly competitive labor market and obtains two key results. First, we show that a binding minimum wage is nevertheless desirable if the government values redistribution toward low wage workers and if unemployment induced by the minimum wage hits the lowest surplus workers first. Importantly, this result remains true in the presence of optimal nonlinear taxes and transfers. In that context, a binding minimum wage enhances the effectiveness of transfers to low-skilled workers as it prevents low-skilled wages from falling through incidence effects. Second, when labor supply responses are along the extensive margin only, the co-existence of a minimum wage with a positive tax rate on low-skilled work is always Pareto inefficient. Overall, our results imply that the minimum wage and subsidies for low-skilled workers are complementary policies.

Right to education – a challenge for the world?

Jelena Dzankic

Abstract

This paper examines the right to education in the international legal system, claiming that the fulfillment of this human right should be guaranteed both by international and state mechanisms. First, the paper positions the right to education within the major documents of the UN legal framework. As such, it explores the pillars of the legal standards related to education: a) non-discrimination and equality; and b) the freedom of choice of the kind and contents of the process of education. Second, the paper views the importance of the right to education in the contexts of globalization and MDGs, liaising its realization with the projects and activities of international organizations.

List of Expressions for Writing Abstracts

It is alleged	говорят, считают, что ...
It is announced	объявлено, что...
It is appropriate	целесообразно, что ...
It is believed	полагают, считают, что ...
It is the case	дело обстоит так, это имеет место
It is certain	несомненно, что
It is considered	считают, считается, что
It is expected	ожидают, ожидается, что
It is felt	считают, что
It follows	отсюда (следует)
It goes without saying	само собой разумеется
It is high time	давно пора
It is known	известно, что
It is a matter of common(general) observation, knowledge	общеизвестно
It is a matter of experience	это дело практики
It is a matter of principle	это принципиальный вопрос
It is necessary	необходимо
It is no wonder	неудивительно
It is to be noted	необходимо заметить
It is reported	сообщается, что
It is said	говорят, что

Finish up the following sentences with the information on your research project.

1. The purpose/aim/intention of this paper is …

2. This paper deals with …

3. This paper/report contains/outlines/examines/assesses …

4. The methods used for … are discussed …

5. The results of … are presented …

6. The results indicate the dominant role of …

7. Data on … are discussed

8. It is (therefore) felt/believed/apparent/obvious that …

9. The author concludes by saying …

10. To conclude/to sum up/in conclusion/on the whole attention is drawn to the fact …

11. Our recommendation is that … should be …