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"A minimum wage increases unemployment among young and unskilled workers. (79%)" The fair market price for young and unskilled workers would be lower than the
by e40 16y ago
"A minimum wage increases unemployment among young and unskilled workers. (79%)"
The fair market price for young and unskilled workers would be lower than the minimum wage, yes. Is this a good thing? For young workers, if young is less than 18 (ie, still in school), then this is OK. But, for unskilled workers? That entire class would be in poverty, as if they aren't on the edge of it now.
- Symmetry 16y agoOnly 2 percent of nonsalaried workers earn minimum wage.
- billswift 16y agoThe problem is that the only real way most unskilled workers have to increase their skills is by working. Even those hired at minimum wage usually quickly move up to a higher wage as they get experience. Unskilled workers don't stay unskilled once they actually start getting experience.
- newt 16y agoThe statement "A minimum wage increases unemployment among young and unskilled workers." is probably true, but if maximizing employment is the only goal, then just pay them peanuts and abolish overheads like health and safety. I'd say that maximizing employment is not the only goal.