Today, we will look at the vast amount of data and see what conclusions we can draw from them, first looking at more seemingly partisan data on the Right and Left and working up from there (see my previous posts on Rights-based arguments and the importance of empiricism in economics).
This is one of the meta-analyses of Neumark and Wascher (the economists most cited in opposition to the minimum wage increases). On page 115 we find the great line: “What is likely most striking to the reader who has managed to wade through our lengthy review is the wide range of estimates of the effects of the minimum wage on employment, especially when compared to the review by Brown et al. in 1982.” That’s for sure. Continue reading →
Yesterday, I posted my first piece on this series exploring the minimum wage and demonstrating why utilitarian arguments are so powerful. Today, I will delve into the utilitarian idea surrounding the minimum wage, and consequently an economic analysis of this policy. Economic theory is an excellent way to understand the consequentialist impacts of a policy in marketplace, but this post will also cover the limitations of theory vs data (for the data analysis, see my subsequent post).
The Economics of the Minimum Wage
Economics allows us to understand how market actors and institutions impact the distribution and exchange of resources. Continue reading →