The Simple Economics of Wage Floors
Research output: Chapter in Book/Report/Conference proceeding › Chapter
The paper surveys minimum wages setting and finds adverse employment effects broadly in line with conventional economic models. Admittedly, UK studies generally report small effects, but the UK is poorly suited for measurement given confounding changes in welfare benefits and lack of regional variation. Clarity is found in better empirical settings such as Canada, which has sharp minimum wage variations and provincial differences, and also in the OECD country panels. Case studies are also reviewed including South Africa (the minimum wage as a white supremacy weapon), Portugal (where extension of collective agreements are analogous to minimum wages, and reduce employment), and Greece (where the minimum encourages temporary work). Alternative ways of helping the poor via encouragement of stable families, more competitive school systems, and subsidies for low paid work are advanced.
|Title of host publication||Flaws and Ceilings|
|Subtitle of host publication||Price Controls and the Damage They Cause|
|Editors||Christopher Coyne, Rachel Coyne|
|Publication status||Published - 2015|
- price controls, minimum wages