Thursday, November 16, 2006
The Minimum Wage and Employment
It seems inevitable now that the new Democratic Congress will raise the minimum wage by a decent amount. For those who are skeptical about the benefits of this kind of policy (as am I), there is some good news: It provides a great opportunity to study its impact. No doubt teams of economists will be lining up to gather data the moment any new law goes into effect. Of course, there will be contradictory conclusions. Those in favor of the increase will find it doesn't hurt employment; those against will find that it does. But it should be possible to parse through the studies to see which are more credible.