Related to the Apply the Concept: Price Floors in Labor Markets: The Debate over Minimum Wage...

 

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Related to the Apply the Concept: "Price Floors in Labor Markets: The Debate over Minimum Wage Policy"] Ekat- erina Jardim, Jacob Vigdor, and colleagues at the University of Washington concluded that when Seattle raised its mini- mum wage, the effect was to lower "the amount paid to workers in low-wage jobs by an average of $74 per month per job in 2016." a. Shouldn't an increase in the minimum wage raise, rather than lower, the amount paid to low-wage work- ers? Briefly explain. b. Does this result mean that no low-wage workers in Seattle benefited from the increase in the minimum wage? Briefly explain. c. What effect might this result have on a normative analy- sis of the minimum wage? Related to the Apply the Concept: "Price Floors in Labor Markets: The Debate over Minimum Wage Policy"] Ekat- erina Jardim, Jacob Vigdor, and colleagues at the University of Washington concluded that when Seattle raised its mini- mum wage, the effect was to lower "the amount paid to workers in low-wage jobs by an average of $74 per month per job in 2016." a. Shouldn't an increase in the minimum wage raise, rather than lower, the amount paid to low-wage work- ers? Briefly explain. b. Does this result mean that no low-wage workers in Seattle benefited from the increase in the minimum wage? Briefly explain. c. What effect might this result have on a normative analy- sis of the minimum wage?

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A In theory an increase in the minimum wage should raise the amount paid to lowwage workers However ... View the full answer