Principles of Microeconomics / Unit 3 MIC 0212 short lesson, about 20 seconds
The Employment Effect: What the Evidence Says
Captions available
The idea
The model predicts a binding minimum wage lowers employment. Studies disagree on how much: some find a ten percent rise cuts low-skill hiring one to two percent; some find none.
In practice
The dispute is about size, and it is a positive question.
Where people slip
Whether lost jobs are worth higher pay for those who keep theirs is normative; the course reports both positions, takes neither.
Your place on the trail
Every lesson rests on earlier ones and opens later ones. Tap any to jump.
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