3 ms·

There are studies that avoid assuming perfect, instantaneous markets. They, too, show nuanced but negative long term effects of min wages. http://voxeu.org/art

There are studies that avoid assuming perfect, instantaneous markets. They, too, show nuanced but negative long term effects of min wages. http://voxeu.org/article/long-run-employment-effects-minimum-wage http://voxeu.org/article/long-run-employment-effects-minimum...

tdb7893 9y ago
How good is the model they are using? They are making all of the conclusions based on a model but data on the model doesn't seem in the scope of the article
- trendia 9y ago
  The article is a summary of the paper. The full paper is available here: https://www.chicagofed.org/~/media/publications/working-papers/2013/wp2013-26-pdf.pdf https://www.chicagofed.org/~/media/publications/working-pape...
crdoconnor 9y ago
"More recently, some researchers (e.g. Dube et al. 2010) exploit differences between counties sitting on each side of a state border where one state raised their minimum wage and another did not. Many, but certainly not all, studies that use these approaches deliver SMALL disemployment effects." Daniel Aaronson, Eric French, Isaac Sorkin from your article ^^^ Dube et al 2010's ACTUAL result: "We compare all contiguous county-pairs in the United States that straddle a state border and find NO adverse employment effects" This a pathetic piece of weasel wording, although not something I'm terribly surprised to see from them specifically.
- trendia 9y ago
  The paper itself is much more nuanced. Their model predicts the results of Dube, especially in industries where few of the employees receive salaries near min wage. It also predicts the minimal disemployment effects (or non-existent disemployment effects, as in Dube) in the short run. Where it differs is in the long-run in industries where 1) many employees receive near min wage, and 2) capital can easily replace labor. So, Aaronson finds disemployment in low cost / fast food restaurants in the long run, but not in expensive sit down restaurants (which can absorb additional labor costs).

tdb7893 9y ago

How good is the model they are using? They are making all of the conclusions based on a model but data on the model doesn't seem in the scope of the article

trendia 9y ago
The article is a summary of the paper. The full paper is available here: https://www.chicagofed.org/~/media/publications/working-papers/2013/wp2013-26-pdf.pdf https://www.chicagofed.org/~/media/publications/working-pape...

crdoconnor 9y ago

"More recently, some researchers (e.g. Dube et al. 2010) exploit differences between counties sitting on each side of a state border where one state raised their minimum wage and another did not. Many, but certainly not all, studies that use these approaches deliver SMALL disemployment effects." Daniel Aaronson, Eric French, Isaac Sorkin from your article ^^^ Dube et al 2010's ACTUAL result: "We compare all contiguous county-pairs in the United States that straddle a state border and find NO adverse employment effects" This a pathetic piece of weasel wording, although not something I'm terribly surprised to see from them specifically.

trendia 9y ago
The paper itself is much more nuanced. Their model predicts the results of Dube, especially in industries where few of the employees receive salaries near min wage. It also predicts the minimal disemployment effects (or non-existent disemployment effects, as in Dube) in the short run. Where it differs is in the long-run in industries where 1) many employees receive near min wage, and 2) capital can easily replace labor. So, Aaronson finds disemployment in low cost / fast food restaurants in the long run, but not in expensive sit down restaurants (which can absorb additional labor costs).