
Simon Says: Minimum Wage
I was at an economic conference in Denver two weeks ago and went to a session on the minimum wage (so you don’t have to!). Economic theory is clear on the effects of hiking the minimum wage: employers demand less workers and so employment falls. Unfortunately, the empirical observations are not as clear-cut. Some of the trouble lies in isolating the effect of minimum wage laws from other factors that affect employment, such as the general economy or competition from other firms. There are also differences in the data economists






