4 ms·

I know that in economics it is difficult to do proper studies hence the "dismal science", but my understanding is that most economists agree that minimum wages

I know that in economics it is difficult to do proper studies hence the "dismal science", but my understanding is that most economists agree that minimum wages don't work right? So why is it still pushed? Shouldn't we "listen to the experts"? Besides there are other tools like the EITC.

fulafel 6y ago
There doesn't appear to be consensus like that - but not because lack of trying: https://www.anderson.ucla.edu/faculty-and-research/anderson-review/minimum-wage-primer-leamer https://www.anderson.ucla.edu/faculty-and-research/anderson-...
- seiferteric 6y ago
  Sorry but that seems to be an opinion article by a non economist? Or am I mistaken?
  - fulafel 6y ago
    I thought it was a pretty even handed piece covering the debate in the field. Here are personally penned unedited opinions from econ nobelists etc if you prefer :) https://www.nytimes.com/2015/07/17/opinion/paul-krugman-liberals-and-wages.html https://www.nytimes.com/2015/07/17/opinion/paul-krugman-libe... https://www.epi.org/publication/raise-minimum-wage/ https://www.epi.org/publication/raise-minimum-wage/
    - seiferteric 6y ago
      Thanks, those are a bit better, though still single opinions. I guess I am looking more for a survey of economists opinions. What was interesting about Krugman's piece was that he said minimum wage used to not work, but now it might due to changes in the economy, which is surprising if true. To me, neither one was a resounding affirmation of minimum wage, both said that $15 did not seem to hurt, and might help slightly.
- imtringued 6y ago
  Minimum wages don't work because it doesn't help people who can't get a minimum wage job. A job guarantee is a better alternative.
- deleted 6y ago
  [deleted]
mdoms 6y ago
There's "economics" and then there's real world effects. Take some time to study what actually happens in countries with a living wage.
- seiferteric 6y ago
  My point is about questioning minimum wage specifically, as opposed to other tools like EITC or negative income tax.
- mrweasel 6y ago
  Or study what happen in countries without a minimum wage, like Denmark. The argument isn’t that you shouldn’t pay a living wage. In Denmark there’s no minimum wage, yet people are paid well. The wages are agreed upon by the employeers organisations and the unions. It does set a minimum wage per industry, but the important part is that it’s not set by politicians who have no idea what the real world looks like in each industry. A universal minimum wage risks being to low for one industry, while being to high for another. It makes more sense to do collective agreements per industry, and by having the unions act on behalf of the employees you ensure sufficielt leverage against the employers.

fulafel 6y ago

There doesn't appear to be consensus like that - but not because lack of trying: https://www.anderson.ucla.edu/faculty-and-research/anderson-review/minimum-wage-primer-leamer https://www.anderson.ucla.edu/faculty-and-research/anderson-...

seiferteric 6y ago
Sorry but that seems to be an opinion article by a non economist? Or am I mistaken?
- fulafel 6y ago
  I thought it was a pretty even handed piece covering the debate in the field. Here are personally penned unedited opinions from econ nobelists etc if you prefer :) https://www.nytimes.com/2015/07/17/opinion/paul-krugman-liberals-and-wages.html https://www.nytimes.com/2015/07/17/opinion/paul-krugman-libe... https://www.epi.org/publication/raise-minimum-wage/ https://www.epi.org/publication/raise-minimum-wage/
  - seiferteric 6y ago
    Thanks, those are a bit better, though still single opinions. I guess I am looking more for a survey of economists opinions. What was interesting about Krugman's piece was that he said minimum wage used to not work, but now it might due to changes in the economy, which is surprising if true. To me, neither one was a resounding affirmation of minimum wage, both said that $15 did not seem to hurt, and might help slightly.
imtringued 6y ago
Minimum wages don't work because it doesn't help people who can't get a minimum wage job. A job guarantee is a better alternative.
deleted 6y ago
[deleted]

mdoms 6y ago

There's "economics" and then there's real world effects. Take some time to study what actually happens in countries with a living wage.

seiferteric 6y ago
My point is about questioning minimum wage specifically, as opposed to other tools like EITC or negative income tax.
mrweasel 6y ago
Or study what happen in countries without a minimum wage, like Denmark. The argument isn’t that you shouldn’t pay a living wage. In Denmark there’s no minimum wage, yet people are paid well. The wages are agreed upon by the employeers organisations and the unions. It does set a minimum wage per industry, but the important part is that it’s not set by politicians who have no idea what the real world looks like in each industry. A universal minimum wage risks being to low for one industry, while being to high for another. It makes more sense to do collective agreements per industry, and by having the unions act on behalf of the employees you ensure sufficielt leverage against the employers.