Some Minimum-Wage Links
Posted By Don Boudreaux On February 18, 2013 @ 4:46 pm In Prices,Reality Is Not Optional,Seen and Unseen,Video,Work | Comments Disabled
Tyler Cowen wonders about the consistency of some economists who support modest increases in the legislated minimum-wage [1]. Such support does indeed appear to be inconsistent with Keynesian theorizing about sticky wages. (Here’s the gist: If, as many minimum-wage proponents insist, a government-mandated higher minimum-wage will prompt significant numbers of employers to re-arrange work patterns and opportunities so as to extract more output per hour from each low-wage worker, why will not employers do the very same in response to workers who, because wages are sticky downward, refuse to lower their wage demands?)
Bob Murphy has more [2].
About at least some of those “provisos” that Bob highlights in his post, here’s Mark Perry [3].
Mark Perry weighs in also here [4]. (Oh, and Mark also shares with us this oldie-but-goodie worth-a-thousand-words cartoon from Henry Payne [5].)
And even more from Mark Perry (and Socrates) [6].
Finally from Mark, here’s some empirical evidence on the consequences of the minimum-wage [7].
Milton Friedman, in this three-and-a-half-minute long video, exposes the political reality fueling the legislated minimum-wage [8]. (Starting around the 1:50 mark, Friedman says “The minimum-wage law is most properly described as a law saying ‘Employers must discriminate against people who have low skills.’”)
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[1] Tyler Cowen wonders about the consistency of some economists who support modest increases in the legislated minimum-wage: http://marginalrevolution.com/marginalrevolution/2013/02/are-your-views-on-sticky-nominal-wages-and-the-minimum-wage-consistent.html
[2] Bob Murphy has more: http://consultingbyrpm.com/blog/2013/02/further-thoughts-on-the-minimum-wage.html
[3] About at least some of those “provisos” that Bob highlights in his post, here’s Mark Perry: http://www.aei-ideas.org/2013/02/even-if-minimum-wage-hikes-dont-reduce-employment-they-still-make-many-unskilled-workers-worse-off/
[4] Mark Perry weighs in also here: http://www.aei-ideas.org/2013/02/a-challenge-to-proponents-of-a-minimum-wage-of-9-per-hour-what-theory-or-analysis-justifies-that-sprecific-wage/
[5] this oldie-but-goodie worth-a-thousand-words cartoon from Henry Payne: http://www.aei-ideas.org/2013/02/cartoon-of-the-day-minimum-wage/
[6] And even more from Mark Perry (and Socrates): http://www.aei-ideas.org/2013/02/socrates-and-the-minimum-wage-2/
[7] Finally from Mark, here’s some empirical evidence on the consequences of the minimum-wage: http://www.aei-ideas.org/2013/02/lets-review-the-adverse-effects-of-raising-the-minimum-wage-on-teenagers-when-it-increased-41-between-2007-and-2009/
[8] Milton Friedman, in this three-and-a-half-minute long video, exposes the political reality fueling the legislated minimum-wage: http://www.youtube.com/watch?v=ca8Z__o52sk
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