The Minimum Wage and the Laws of Economics

The theory in this article is clear on the effects of the minimum wage; increases will reduce employment among marginal workers in the labor force. The empirical evidence, however, is muddled, probably because of the ideological leanings of those doing the research. Nevertheless, I think it is fair to say that far more studies have found negative employment effects than those that found none.

 

http://economix.blogs.nytimes.com/2013/12/04/the-minimum-wage-and-the-laws-of-economics/

1 Comment »

  1. drew Said,

    December 10, 2013 @ 9:57 pm

    First of all, since states can regulate minimum wage then the federal minimum wage is not as highly connected to unemployment rates as one may think. Many states have a minimum wage that is higher than the federal minimum wage so it is easy to compare the affects of different wages. Instead, people should be more concerned about job quality. When people are given a higher wage regardless of the work they offer, quality can become a problem. There are many jobs right now that pay minimum wage or close to it but don’t require a high demand for skilled work. Therefore, the low salaries are justified in a way. Minimum wage is a complicated issue regarding price floors so I agree further study should be done in order to fully understand its consequences.

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