Saturday, January 05, 2013

Minimum Wage

An opinionated and poignant article on the minimum wage is here.

As an economist I'm supposed to be against the minimum wage, but I'm not so sure anymore.  I think models of the labor market are impoverished and conceal critical decisions that cannot be captured in a variable.  For example, suppose I marry into a family and I have to hire my spouse's cousin?  What about the power of bargaining that some laborers have? 

I welcome your opinion.

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