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To: Wildstar who wrote (193)	4/24/2003 12:07:01 AM
From: Don Lloyd	Respond to of 445

Wildstar, In Gene Callahan's book, he mentions that minimum wage laws initially help workers who make more than minimum wage by reducing competition. I'm not sure I understand that. I would think that the non-marginal and marginal workers are competing for the same jobs, and that minimum wage laws would have no effect on the competition for these jobs. Am I missing something? Maybe. Every worker potentially provides a unique value of service to the employer. The less skilled worker may provide a lower level of service, but maybe not so much lower that it is not justified by an even lower salary. So the minimum wage prevents the employer from hiring the lower skilled worker even though he may provide a better value per dollar for the employer. Regards, Don