This paper investigates the distributive and welfare impacts of increasing minimum wage in an economy with imperfect competition. In the short run without entry/exit of manufacturing firms, an increase in the urban minimum wage reduces the skilled–unskilled wage gap but worsens unemployment and welfare in the economy. In the long run, a higher minimum wage induces firms to exit the urban manufacturing sector, thereby releasing capital to the rural agricultural sector. This can yield double dividends by further narrowing wage inequality and improving social welfare. Empirical results based on data from 43 selected countries confirm our theoretical findings.

中文翻译：

---

最低工资、企业动态和工资不平等：理论和证据

本文研究了在不完全竞争的经济中提高最低工资对分配和福利的影响。在没有制造企业进出的短期内，城市最低工资的提高会缩小熟练与非熟练的工资差距，但会恶化经济中的失业和福利。从长远来看，较高的最低工资会促使企业退出城市制造业，从而将资本释放到农村农业部门。通过进一步缩小工资不平等和改善社会福利，这可以产生双重红利。基于来自 43 个选定国家的数据的实证结果证实了我们的理论发现。