Increasing the minimum wage does not necessarily reduce employment

Manning, Alan ORCID: 0000-0002-7884-3580 (2014) Increasing the minimum wage does not necessarily reduce employment. LSE American Politics and Policy (27 Jan 2014). Website.

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Abstract

Recent months have seen President Obama make a renewed push to address inequality in the U.S., especially via one policy lever he has focused on previously- raising the minimum wage. For many, conventional economic wisdom states that raising the minimum wage costs jobs, as employers are less willing to take on staff at higher rates of pay. Alan Manning takes a close look at the economics and the evidence of these claims, finding that one of their basic assumptions, that labor markets are highly competitive, does not hold. He argues that in light of this, and of empirical evidence from academic studies of wages and employment, it is very difficult to claim that wages have a significant effect on employment in either direction.

Item Type:	Online resource (Website)
Official URL:	http://blogs.lse.ac.uk/usappblog/
Additional Information:	© 2014 The Author
Divisions:	LSE
Subjects:	H Social Sciences > HB Economic Theory
Date Deposited:	29 Jul 2014 15:45
Last Modified:	01 Oct 2024 03:09
URI:	http://eprints.lse.ac.uk/id/eprint/58465

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