Arin Dube's Research on US Minimum Wage Effects

Effect of Minimum Wage on Employment and Wages Under Employer Market Power

Negative Consequences of an Excessively High Minimum Wage

A local politician makes the following public statement regarding a proposed increase in the minimum wage: 'Any increase to the minimum wage will automatically lead to significant job losses for our most vulnerable workers. It's a simple economic law that when the price of something goes up, people buy less of it.' Based on the range of findings from economic studies, which of the following best evaluates the politician's statement?

Evaluating Perspectives on Minimum Wage and Employment

Analyzing a Minimum Wage Policy Change

Reconciling Minimum Wage Arguments

Based on the general findings of modern empirical research, the negative employment effects resulting from moderate increases in the minimum wage are typically found to be larger in magnitude than the positive wage gains for workers who remain employed.

Match each statement about the minimum wage to the perspective it best represents.

Underlying Assumptions in the Minimum Wage Debate

A city raises its minimum wage from $10 to $12 per hour. A research group studies the effects one year later and finds that employment among low-wage workers in the city decreased by 0.5%, while the average weekly earnings for those workers who remained employed increased by 15%. How do these findings relate to the broader economic debate on the minimum wage?

Advising on a Minimum Wage Proposal

Critiquing the Simple Model of Minimum Wage