Research at the University of Washington concluded that when Seattle raised its minimum wage, the effect was to lower "the amount paid to workers in low-wage jobs by an average of $74 per month per job in 2016." Source: Ekaterina Jardim, Mark C. Long, Robert Plotnick, Emma van Inwegen, Jacob Vigdor, and Hilary Wething, "Minimum Wage Increases, Wages, and Low-Wage Employment: Evidence from Seattle," National Bureau of Economic Research Working Paper 23532. Shouldn't an increase in the minimum wage raise, rather than lower, the amount paid to low-wage workers?

Research at the University of Washington concluded that when Seattle raised its minimum wage, the effect was to lower "the amount paid to workers in low-wage jobs by an average of $74 per month per job in 2016." Source: Ekaterina Jardim, Mark C. Long, Robert Plotnick, Emma van Inwegen, Jacob Vigdor, and Hilary Wething, "Minimum Wage Increases, Wages, and Low-Wage Employment: Evidence from Seattle," National Bureau of Economic Research Working Paper 23532. Shouldn't an increase in the minimum wage raise, rather than lower, the amount paid to low-wage workers?

Microeconomics

13th Edition

ISBN:9781337617406

Author:Roger A. Arnold

Publisher:Roger A. Arnold

Chapter14: Wages, Unions, And Labor

Section14.3: Effects Of Labor Unions

Problem 2ST

See similar textbooks

Similar questions

10. What is the alternative to minimum wage? Show in the graph what needs to happen for the equilibrium wage to rise, absent minimum wage.
What are the possible effects of minimum wage increase to the economy?
n the news on Saturday, October 3d, 2020 Geneva voted by a two-thirds majority to introduce a minimum wage of 23 Swiss francs ($25) an hour for a 41-hour work week. That adds up to somewhere in the range of $4,100 a month, or $53,300 annually. The Geneva minimum wage is the highest minimum wage ever. In comparison, the federal minimum wage in the US is $7.25 an hour. Across the Swiss border, in France, the minimum wage is half Geneva's minimum wage (i.e, assume the French minimum wage is $12.50 an hour). The measure will be executed this month, according to an organization representing the cross-border workers of France and Switzerland. "With these votes, Geneva has managed to maintain its attractiveness by rejecting the closure of borders and adopting a minimum wage," the group wrote in a brief post, lauding the decision and stating that the opposite outcome "could have jeopardized the free movement of nearly 200,000 cross-border workers." Opponents of the new minimum wage argued that…
Using an appropriate illustration explain the impact of the minimum wage in the labour market
Draw a supply-demand diagram representing the impact of a minimum wage in the labor market. What does economic theory predict about the change in employment with the introduction of or increase in a minimum wage? How does the prediction above vary with elasticity of labor supply and labor demand?
Using the diagram, explain the impact of minimum wage.
$30 a week boost to minimum wage The government increased the minimum wage by $30 a week to $570 a week. Unions wanted a $35 a week increase, but employers argued that a $35 a week. increase was unaffordable. Source: ABC Australia, February 11, 2011 The graph shows a market for low-skilled labor. If the minimum wage is set at $570 a week, If the minimum wage is set at $540 a week, OA. some people who want a job can't get one; everyone who wants a job has one B. firms cannot hire all the labor they want; everyone who wants a job has one OC. everyone who wants a job has one; firms cannot hire all the labor they want OD. everyone who wants a job has one; some people who want a job can't get one 590- 580- 570- 560- 550 540- 530- 520- 510+ 9.8 Wage rate (dollars per week) A D 9.9 10.1 10 Quantity (millions of hours per year) S 10.2 Next Q Q G
Click on the icon to read the news clip, then complete the following steps. The graph shows the market for fast-food workers. Draw a point to show the wage rate and the number of fast-food workers employed if the minimum wage is: 1) $13.00 an hour. Label the point 1. 2) $15.00 an hour. Label the point 2. In the graph, at a minimum wage of $15.00 an hour. wage of $13.00 an hour OA. some workers are unemployed; no one is unemployed and firms have all the workers they want OB. some workers are unemployed; firms cannot hire as many workers as they want ; and at a minimum OC. firms cannot hire as many workers as they want; no one is unemployed and firms have all the workers they want D. no one is unemployed and firms have all the workers they want; some workers are unemployed M 16.00 15.00- 14.00- 13.00- 12.00- 11.00- 10.00- Wage rate (dollars per hour) 50 A S 100 150 200 250 300 350 Quantity (thousands of workers) >>> Draw only the objects specified in the question. Next
What are the pros and cons of increasing the minimum wage
Illustrate and explain the impact of minimum wage on the labor market.
Find an article on either the current or attempts to raise the minimum wage. Briefly summarize the article. Are there any positive effects of higher minimum wages mentioned in the article? If so, what are they? Does the article cite evidence, theory, or both? Are there any negative effects of higher minimum wages mentioned in the article? If so, what are they? Does the article cite evidence, theory, or both? Do you support a $15/hour minimum wage? Explain your reasons. Did the article influence your thinking at all? Don't forget to cite your sources.
Which of the following is the most likely result of an increase in the minimum wage? a.a decrease in the employment of unskilled workers b.an increase in the demand for unskilled workers c.a decrease in the number of workers seeking minimum wage jobs d.an increase in the employment of unskilled workers