Econ 0858 Notes- 9.02.15.docx

Econ 0858 Notes- 9.02.15.docx - Econ 0858 Notes 9.02.15...

Info icon This preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 0858 Notes- 9.02.15 Slide 8: Slide 9: The Labor Market and Minimum Wage Inefficiency of a Minimum Wage: A minimum wage (if it is above the equilibrium wage) leads to an inefficient use of resources . Why? Because the quantity of labor employed (90,000) is less than the efficient quantity (100,000). Slide: 11: The Labor Market and Minimum Wage A Living Wage: A living wage has been defined as an hourly wage rate that enables a person who works a 40 hour week to rent adequate housing for not more than 30 percent of the amount earned. Living wage laws already operate in many cities such as St. Louis, Boston, Chicago, and New York City. The effects of a living wage are similar to those of a minimum wage. Slide 13: What’s wrong with Minimum Wage? The gain to the workers who keep their jobs is less than the loss due to: The workers who lose their jobs and The firms who have to pay higher wages. The losses outweigh the gains
Image of page 1

Info icon This preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Econ 0858 Notes- 9.02.15 Slide 15: The Earned Income Tax Credit Alternative to Minimum Wage The earned income tax credit (EITC) Is a targeted tax credit to the working poor. Was, in 2013, as much as $4,824 for a working poor family with two children. 70% of benefits of EITC go to households in poverty 70% of minimum wage benefits go to households not in poverty Political hurdles Slide 16: The Rebuttals to the Traditional Analysis The Macroeconomic Argument
Image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern