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Employers will always try to reduce their wage bill by getting rid of unnecessary workers. It's not something they do in response to minimum wage hikes, because
by pytester 7y ago
Employers will always try to reduce their wage bill by getting rid of unnecessary workers. It's not something they do in response to minimum wage hikes, because if they could reduce headcount and maintain the same level of service, 99% of the time they already have.
This is why it's inelastic. Employers naturally optimize their headcount no matter what the size of the overall wage bill is.