Thread: Minumum wage
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Old 06-25-2006, 01:42 AM   #56 (permalink)
nofnway
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Quote:
Originally Posted by Gatorade Frost
I certainly enjoy all the sarcasm in this thread.

Anyway - I've come to the conclusion that there should be a minimum wage, and that it should be adjusted annually to the cost of living.
What is your cost of living?

Is mine higher or lower?



Imagine wages as a ladder and each wage, in whatever increment you chose, is on the ladder. You are free to choose any wage on the ladder. You may not be able to reach the top wages until you climb up the rungs below. So the minimum wage is already on the ladder...it's zero.

Also I ran across this looking at
and discussing it with a co-worker in the past
http://www.nber.org/papers/w10656
Quote:
Exposure to minimum wages at young ages may lead to longer-run effects. Among the possible adverse longer-run effects are decreased labor market experience and accumulation of tenure, lower current labor supply because of lower wages, and diminished training and skill acquisition. Beneficial longer-run effects could arise if minimum wages increase skill acquisition, or if short-term wage increases are long-lasting. We estimate the longer-run effects of minimum wages by using information on the minimum wage history that workers have faced since potentially entering the labor market. The evidence indicates that even as individuals reach their late 20's, they work less and earn less the longer they were exposed to a higher minimum wage, especially as a teenager. The adverse longer-run effects of facing high minimum wages as a teenager are stronger for blacks. From a policy perspective, these longer-run effects of minimum wages are likely more significant than the contemporaneous effects of minimum wages on youths that are the focus of most research and policy debate.
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