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There is no empirical evidence that introducing a minimum wage causes job losses on a scale where the increase of unemployment benefits would outweigh the benef
by nhaehnle 15y ago
There is no empirical evidence that introducing a minimum wage causes job losses on a scale where the increase of unemployment benefits would outweigh the benefits of its introduction.
The whole idea that the minimum wage causes unemployment is a myth that is based on incorrect labour market models.
- yummyfajitas 15y agoThere is little good empirical evidence about the minimum wage, period. I'd have a hard time showing any harm, and you'll have a hard time showing any benefit. That's because the minimum wage is usually set at such a low level that it applies to very few workers (<1.5M in the US, as of 2007), so very few natural experiments are available. http://www.bls.gov/cps/minwage2007.htm http://www.bls.gov/cps/minwage2007.htm I'll give you one natural experiment, however. A min wage hike in American Samoa caused unemployment to increase by at least 6% (= 2041 workers fired by Chicken of the Sea / (65k American Samoans x 52% labor force participation rate)). http://washingtonexaminer.com/node/127791 http://washingtonexaminer.com/node/127791