Economics and Finance


Second Thought About Minimum Wage and Its Relation to Labor Supply

Authors: Wan-Jiung Hu

Minimum wage policy is usually thought to cause unemployment in classical economics. However, I show here it may also cause employment rate increasing as well as labor wage increasing if the government can catch the real market equilibrium point. Thus, we should have a second thought about the minimum wage policy. It can cause employment as well as unemployment depending on the setting level of minimum wage.

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[v1] 2014-05-18 03:21:34

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