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When we think of the dominant political topics of the day, issues like health care, immigration, and foreign policy in the Middle East quickly come to mind, but it is a mistake to leave the minimal commission from the list. At the face of Republican opposition, congressional action is unlikely before 2015 at the first, but there's quite a bit away from Capitol Hill. States and municipalities across the country are leading a localized drive to increase the minimum wage who see an opening to......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
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
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