Econ 104-5 - Econ1045 18:27 : Whatisminimumwage(...

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Econ 104-5 18:27 Economics as a moral science 2: Analytics of Minimum Wage Basics on Minimum Wages What is minimum wage? (it only becomes relevant when the minimum wage goes above  the equilibrium) Lowest amount of money an employer can legally pay an employee Argument against: impeding people from choosing what they want to do What is a “living wage”? A minimum wage high enough to support a worker and his/her family at decent  minimum standard Certainty combines questions of science and morality Is the “law of unintended consequences” at work? What happens if establishing a minimum wage actually does more bad than it does  good? i.e. cause unemployment? If you worry about this, you’ve got to think about the realities and the world doesn’t stay  fixed. Hurting people you are trying to help The minimum wage over time Nominal vs. real minimum wage Making an adjustment for inflation and the cost of living
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This note was uploaded on 10/24/2011 for the course ECON 104 taught by Professor Dolenc during the Fall '08 term at UMass (Amherst).

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Econ 104-5 - Econ1045 18:27 : Whatisminimumwage(...

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