Reconsidering the Minimun Wage Law

Abstract

If the minimum wage were as good as its advocates claim, this would be the most efficient way of eliminating poverty. The latter is still with us. This is a pernicious law that raises no one’s wages, apart from very temporarily, but creates unemployment for unskilled workers. This paper criticizes arguments in favor of such legislation such as that from monopsony. It disparages econometric studies which purport to demonstrate the benefits of this legislation.