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MW_INEQ

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Minimum Wages Mis Allocation of Labour and Inequality

Over the last two decades, wage and income inequality have increased sharply in most developed countries which is causing ever greater concern in the economic and political debate. A central challenge for policymakers is to develo... ver más

31/10/2025

UNIVERSITY COLLEGE...

1M€

Presupuesto del proyecto: 1M€

Líder del proyecto

UNIVERSITY COLLEGE LONDON No se ha especificado una descripción o un objeto social para esta compañía.

TRL 4-5

Fecha límite participación Sin fecha límite de participación.

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Financiación concedida El organismo H2020 notifico la concesión del proyecto el día 2020-10-26

ERC-2020-STG: ERC STARTING GRANTS

I+D

Cerrada hace 5 años

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3 Participantes

UNIVERSITY COLLEGE LONDON

1.01M€ | Lider

GIRO GH

451.05K€ | Participante

THE UNIVERSITY OF LIVERPOOL

95.99K€ | Participante

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Duración del proyecto: 60 meses Fecha Inicio: 2020-10-26
Fecha Fin: 2025-10-31

Líder del proyecto

UNIVERSITY COLLEGE LONDON No se ha especificado una descripción o un objeto social para esta compañía.

TRL 4-5

Presupuesto del proyecto 1M€

Fecha límite de participación Sin fecha límite de participación.

Descripción del proyecto Over the last two decades, wage and income inequality have increased sharply in most developed countries which is causing ever greater concern in the economic and political debate. A central challenge for policymakers is to develop measures that can simultaneously improve the distribution of economic resources and also foster economic growth. In our proposed research, we will study the effectiveness of a particular prominent instrument to achieve this goal - the minimum wage. First, we will provide a comprehensive assessment of how minimum wages affect the allocation of resources. We will examine whether minimum wages improve the efficiency of worker-firm sorting by reallocating workers to more efficient firms, how an increase in mandated wage floors ripples through the wage distribution and affects job flows among firms, and how the policy affects the assortativity of firm-to-firm relationships. Second, we will look at the impact of the minimum wage on different groups in the population by studying its effect on the allocation of jobs among immigrant and native workers. Recent research suggests that there is a link between inequality and intergenerational mobility but whether public policies that alleviate inequality can also contribute to higher intergenerational mobility remains an open question. To fill this gap in the literature, we will study the effect of minimum wages on maternal labour supply, on child development and eventually on intergenerational mobility. The comprehensive agenda outlined in this proposal therefore addresses a more general call for understanding the roots of inequality and for unbundling the structure of low-wage labour markets. We will achieve this by exploiting a combination of high-quality data, unique policy changes and richer models that explicitly consider the role of firms, their wage setting power, and the networks they are operating in.

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