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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (321267)	1/16/2007 8:01:41 PM
From: TimF	Read Replies (1) \| Respond to of 1574257

Minimum Wages and Employment: A Review of Evidence from the New Minimum Wage Research David Neumark, William Wascher NBER Working Paper No. 12663 Issued in November 2006 NBER Program(s): LS ---- Abstract ----- We review the burgeoning literature on the employment effects of minimum wages - in the United States and other countries - that was spurred by the "new minimum wage research" beginning in the early 1990's. The wide range of existing estimates makes it difficult for us to draw broad generalizations about the implications of the new minimum wage research. Clearly, no consensus now exists about the overall effects on low-skilled employment of an increase in the minimum wage. However, the oft-stated assertion that this recent research fails to support the traditional view that the minimum wage reduces the employment of low-skilled workers is clearly incorrect. The overwhelming majority of the studies surveyed in this paper give a relatively consistent (although not always statistically significant) indication of negative employment effects of minimum wages. In addition, among the papers we view as providing the most credible evidence, almost all point to negative employment effects. Moreover, the evidence tends to point to disemployment effects of minimum wages in the United States as well as many other countries. Two potentially more important conclusions emerge from our review. First, we see very few - if any - cases where a study provides convincing evidence of positive employment effects of minimum wages, especially from studies that focus on broader groups (rather than a narrow industry) for which the competitive model predicts disemployment effects. Second, when researchers focus on the least-skilled groups most likely to be adversely affected by minimum wages, we regard the evidence as relatively overwhelming that there are stronger disemployment effects for these groups. nber.org

To: TimF who wrote (321267)	1/17/2007 2:37:47 PM
From: tejek	Read Replies (2) \| Respond to of 1574257

The killer tsunamis that yesterday ravaged Asia call to this economist’s mind discussions about price gouging. I don’t know the laws and legislation of Sri Lanka, Indonesia, and other countries whose citizens are now suffering so grievously, but I hope for the sake of these people that so-called price-gouging is not prohibited. (Hoping, alas, isn’t synonymous with predicting.) To prevent the price of some staple good (say, lumber) from rising to its market level in the wake of a natural disaster is to camouflage the underlying reality. The underlying reality is that the disaster (1) appreciably reduced supplies of lumber available in the devastated area – both by destroying inventories of lumber and by destroying supply lines; and (2) appreciably increased the demand for lumber in these areas. In short, the underlying reality is that the value of lumber to people in these devastated areas is now significantly higher than it was just before the tidal waves hit. These people need lumber more than they did before, and there's less lumber immediately available. This reality is unfortunate, but it is, well, real. Being real, it must be dealt with. It cannot be hollered, hoped, dreamed, prayed, or legislated away. And it means that the welfare of the people whose homes and businesses (not to mention love ones) were destroyed is much lower than it would have been had the tsunamis not hit. You are a very disturbing human being........and I use the term "human" very loosely.

To: TimF who wrote (321267)	1/17/2007 2:58:39 PM
From: Road Walker	Read Replies (3) \| Respond to of 1574257

re: This reality is unfortunate, but it is, well, real. Being real, it must be dealt with. It cannot be hollered, hoped, dreamed, prayed, or legislated away. And it means that the welfare of the people whose homes and businesses (not to mention love ones) were destroyed is much lower than it would have been had the tsunamis not hit. When Hurricane Andrew hit South Florida, Home Depot froze their prices because they felt they were part of the community and were trying to help out their customers and employees. (As far as I know they always do this when a disaster hits). I suppose there is no room for this sick sentimentality in your ultra-capitalist world, eh John Galt? (Or are you more like the mean banker in It's a Wonderful Life).