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It's not a competitive market -- employers have more market power than employees. That's why in practice minimum wage increases don't have much of an effect on
by QuesnayJr 6y ago
It's not a competitive market -- employers have more market power than employees. That's why in practice minimum wage increases don't have much of an effect on unemployment. Here's a recent paper on the topic (that cites many of the previous papers that have similar findings): http://digamoo.free.fr/azar719.pdf http://digamoo.free.fr/azar719.pdf
- scarface74 6y agoIf that were the case that employees don’t have any choice, you wouldn’t hear stories about farmers who couldn’t get American day laborers at any price - even upwards of $20/hour or more. There are some jobs that Americans won’t do at any price.