Empirical studies that have examined the longer-term effects of increasing the minimum wage Find more significant long-term effects because new firms are in a better position to choose labor-saving technology than existing firms Have been criticized for failing to control for dynamic shocks to the economy over the long run Conclude that the short-term effect is no different from the long-term effect Find more negative employment effects in the short-term than in the long-term
Empirical studies that have examined the longer-term effects of increasing the minimum wage Find more significant long-term effects because new firms are in a better position to choose labor-saving technology than existing firms Have been criticized for failing to control for dynamic shocks to the economy over the long run Conclude that the short-term effect is no different from the long-term effect Find more negative employment effects in the short-term than in the long-term
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Question
Empirical studies that have examined the longer-term effects of increasing the minimum wage
Find more significant long-term effects because new firms are in a better position to choose labor-saving technology than existing firms
Have been criticized for failing to control for dynamic shocks to the economy over the long run
Conclude that the short-term effect is no different from the long-term effect
Find more negative employment effects in the short-term than in the long-term
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Step 1
Least wages have been characterized as the base measure of wages that a business is expected to pay wage earners for the work performed during a given period, which can't be decreased by aggregate understanding or a singular agreement.
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