This is the paper, linked in the article: https://irle.berkeley.edu/wp-content/uploads/2023/05/High-Minimum-Wages-and-the-Monopsony-Puzzle.pdf https://irle.ber

This is the paper, linked in the article: https://irle.berkeley.edu/wp-content/uploads/2023/05/High-Minimum-Wages-and-the-Monopsony-Puzzle.pdf https://irle.berkeley.edu/wp-content/uploads/2023/05/High-Mi... There’s both theory and evidence. The theory is that labor market monopsony (few employers dominating the market and having the market power to drive down wages) makes it so that minimum wage laws push wages closer to what they would be in a competitive market. This doesn’t reduce employment. Instead, it increases it. The puzzle that they talk about is that previous research has found zero employment effect instead of a positive effect. The paper explains why they think this is.