9 ms·
If you don't address other costs, rising minimum wages can end up putting employers out of business. Now you have a decline in the supply of minimum wage jobs.
by malandrew 9y ago
If you don't address other costs, rising minimum wages can end up putting employers out of business. Now you have a decline in the supply of minimum wage jobs.
https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2951110 https://papers.ssrn.com/sol3/papers.cfm?abstract_id=2951110
- acover 9y agoI'm not being precise. I do not have the expertise to debate this. When I talk about the minimum wage, what really matters is what that income can buy you. Rather than discussing nominal wage and associated costs let's just combine them and talk about real wages. Clearly there is a point where a higher minimum wage (real) is infeasible and detrimental. In my opinion there is a wide range of minimum wages (real) that raise the welfare of those whose skill is in excess supply.