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Consider the effect of a tax on labor in the presence of a minimum wage. Assume the minimum wage is the equilibrium wage without the
Consider the effect of a tax on labor in the presence of a minimum wage. Assume the minimum wage is the equilibrium wage without the tax. If the government places a $1- per-worker-hour tax on workers, the hourly wage rises by 50 cents. What happens to the hourly wage if the government places the tax on employers? In this case, how do tax-inclusive and after-tax wages depend on "who writes the check
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