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It is easy to be confused about what impacts minimum wages have on jobs for workers. A "Binding" minimum wage that is set higher than the competitive equilibrium wage reduces job for two reasons. Recent research on employment effects. The earliest studies of the employment effects of minimum wages used only national variation at the U.S. Minimum wage. An elasticity of 0.1 for teens, for example, implies that a 10 percent increase in the wage floor reduces adolescent labour by 1 percent. Newer......Read More
Right, so this issue has been talked about widely caused arguments, tears, frustration and bloody murder. Instead of spending my time off on Christmas and New Year's relaxing, I have been reading and re-reading legislation, articles, documents and creating further personal enquiries because for the majority, this law makes zero sense and nobody until today has really been able to explain it clearly in a way that will be properly understood (myself included!) . The big question is: Who's......Read More
Being the type compassionate souls Americans are, we get tricked into believing things because we want them to be true. Wages, jobs, and poverty are passionately debated and exceptionally prone to optimistic misinformation and logical fallacies. Minimum wage and the notion of a "living wage" are examples of just that. They sound useful and nice, but in practice they do much more bad than good. They displace jobs and discourage hiring, trigger increases in cost levels, plus they don't assist the......Read More
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