Tuesday, January 5, 2016

The Effect of Higher Minimum Wages on the Unskilled

More evidence that, yes, labor demand curves do slope downward.

The money quote:
My baseline estimate is that this period’s full set of minimum wage increases reduced employment among individuals ages 16 to 30 with less than a high school education by 5.6 percentage points.
It doesn't seem to matter how much research is done: far too many people persist in thinking that increases in the minimum wage are somehow a magical cure-all for poverty.

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