Question: It is commonly taught in introductory microeconomics courses that minimum wages cause unemployment. The federally mandated minimum wage is $7.25, but approximately12 states have higher

It is commonly taught in introductory microeconomics courses that minimum wages cause unemployment. The federally mandated minimum wage is $7.25, but approximately12 states have higher state-mandated minimum wages. Why can’t you test the “minimum wages cause unemployment” theory by simply comparing unemployment rates across states with different minimum wages? Can you think of a better way to test it?

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