It is commonly taught in introductory microeconomics courses that minimum wages cause unemployment. The federally mandated minimum

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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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Public Finance and Public Policy

ISBN: 978-1429278454

4th edition

Authors: Jonathan Gruber

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