The Minimum Wage Law:
A Snare and a Delusion
The Minimum Wage Law:
A Snare and a Delusion
Author(s): Guriy Borodkin, Walter E. BlockSubject(s): National Economy, Public Law, Labor relations, Labour and Social Security Law
Published by: Fundacja Instytut Nauki o Polityce
Keywords: Minimum wage; unemployment; productivity;
Summary/Abstract: In the view of many people, understandably, and all too many economists, disgracefully, the minimum wage law actually boosts compensation for people who would otherwise earn less than the amount established by this legislation. This is a snare and a delusion. In actual point of fact, thislaw increases the wages of no one at all, at least not in equilibrium; ratherit leads to unemployment for those workers unfortunate to have a mar-ginal revenue product below the level mandated by this enactment. It is the burden of the present paper to make good on this claim.
Journal: Polish Journal of Political Science
- Issue Year: 9/2023
- Issue No: 2
- Page Range: 47-64
- Page Count: 18
- Language: English