Monday, September 16, 2013

When Minimum wage becomes relevant

The effect of the minimum wage in American Samoa and the Northern Mariana Islands offers a good example of how there are two possible outcomes with minimum wages:

1) It is low enough to have such a small effect on the total labor force that measurement of outcomes is difficult.

2) It is high enough to have a measurable effect.  The workers on these islands now have experienced that effect, unfortunately.

(I think non-subscribers can see the article if you google "minimum-wage realities".)

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