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by c1ccccc1
1547 days ago
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It would only take one example to disprove the theory, but finding that example is probably going to be somewhat difficult, since you'd need to establish that the increase in minimum wage caused the increase in employment. In the examples you give, maybe employment went up because those countries increased the minimum wage, or maybe it would have gone up anyway as those countries recovered from the financial crisis. Or maybe some third factor caused the increase. Or, if unemployment was unusually high during the crisis, it could be pure reversion to the mean. |
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"Minimum Wages and Employment: A Case Study of the Fast Food Industry in New Jersey and Pennsylvania." (with Alan Krueger), American Economic Review 84, September 1994.