According to Neumark, Salas, and Wascher (1), “debates about the economic effects and the merits of the minimum wage date back at least as far as the establishment of the Department of Labor as a cabinet-level agency in 1913.” The authors describe the neoclassical school argument that “wage levels were determined by workers’ productivity and that minimum wages would reduce employment among low-skilled workers.” In other words, under free market conditions, the wages perceived by any given worker would reflect the productivity of that worker’s labor. The setting up of a minimum wage would upset the workings of ...
Essays on Disemployment
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