3 ms·
That CEPR paper is really the gold standard of "evidence-based" economics. There's a wealth of real-life evidence that shows what actually happens when the min
by panarky 13y ago
That CEPR paper is really the gold standard of "evidence-based" economics.
There's a wealth of real-life evidence that shows what actually happens when the minimum wage is increased. So put away all the theories about what should happen, and look at the extensive data on what does happen.
It turns out this is a lot more complex than just "higher price of labor = lower supply of jobs". Offsetting the higher cost per hour are lower turnover, lower training costs, upgraded skill levels, higher worker productivity, and higher demand when workers spend their bigger paychecks.
Believe it or not, the data shows that modest increases in the minimum wage do not reduce employment in any significant way.