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> With data from 25 OECD countries over 15 years from 2000 to 2014, we find that a higher minimum wage decreases labor demand but does not affect labor supply.
by acover 6y ago
> With data from 25 OECD countries over 15 years from 2000 to 2014, we find that a higher minimum wage decreases labor demand but does not affect labor supply. Our empirical results also suggest that relatively modest increases in minimum wages have limited impacts on employment. On average, 10 percent increase in the minimum wage decreases employment by 0.7 percent, thereby increasing unemployment rate by 0.64 percent.
https://ns1.6thsigmahosting.com/pms/index.php/jrge/article/view/5227 https://ns1.6thsigmahosting.com/pms/index.php/jrge/article/v...
This is just one paper, I don't know if it's a fact.
- aplummer 6y agoI can't look at that website due to certificate trust settings, however thanks for replying with data. It's pretty interesting numbers (lets assume its true). So a raise of 25% would equate to 1.28% unemployment. A fully socialized welfare system (Centrelink in Australia) costs 14% of GDP with 6.8% unemployment. So a reversal of 25% would reduce that to 5.52%, and 11.36% of GDP (assuming overheads etc are linear, optimistic). TLDR; if this article is correct, raising minimum wage 25% requires governments invest 2.6PP of GDP. At least that's a decent point to have a rational discussion about where governments spend money and what your priorities are - thanks for sharing.