Relatedly, Greg Mankiw links to a CBO study indicating that a better way to help poor people would be through an increase in the Earned Income Tax Credit. But that would require the government to actually do something, of course, rather than just require private businesses to do something.
Wednesday, January 10, 2007
The Real Impact of the Minimum Wage
This Christian Science Monitor article offers "[a] glimpse into the lives of people who live at bottom-rung pay rates illustrates why, to supporters of the change, the minimum wage is long overdue for a raise." It examines how much money people need in order to live, and examines whether $7.25 an hour is enough. But what about the people who lose their jobs as a result of the increase? They don't seem to rate a mention.