Assuming that the equilibrium wage is lower than the minimum wage set by the government, the effects of this "wage floor" (can't go any lower than $X.XX) would cause more workers to seek employment while encourage employers to be more selective in their hiring practices.
The minimum wage does not affect skilled labor employment nearly as much, however, as they tend to have higher starting wages than the minimum wage.
I feel that it would be better to get rid of the minimum wage and take the increased government profit from the higher employment rates into education... minimum wage is just a stopgap solution that cures a symptom and not a cause.
Rocky, I know you're more KFL-ian than me, so disagree!
Sun Sep 04, 2011 1:27 pm
