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Old 03-02-2017, 09:15 PM
Mutterscrawl Mutterscrawl is offline

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Join Date: Apr 2010
Location: Texas, USA
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Originally Posted by PajamaSalad View Post
When I took my economics classes at Purdue our textbook told us most economists oppose the minimum wage.

Majority of Labor Economists Believe Minimum Wage Hikes Cause Unemployment
Those are from 2007, you should look at the current articles.

Beginning in 2007, there were two major developments in the U.S. economy. The federal minimum wage rose in steps from $5.15 to $7.25 per hour, and overall employment growth slowed significantly as the country began its descent into the Great Recession. A recent paper by Jeffrey Clemens and Michael Wither argues that the national minimum wage increase from 2007 to 2009 was responsible for a substantial portion of the employment decline (Clemens and Wither 2016). Their conclusions are mistaken because the authors fail to adequately control for the effects of the Great Recession. A number of robustness tests make this clear.

States with large increases in the minimum wage had relatively more jobs in industries hardest hit by the Great Recession, such as construction. Controlling for a state’s industrial structure substantially reduces the magnitude of Clemens and Wither’s estimates, rendering them statistically insignificant.

States with large increases in the minimum wage were in regions of the country that were hardest hit by the Great Recession. Regional controls accounting for the geographic concentration of minimum wage–raising states also substantially reduce the magnitude of Clemens and Wither’s findings.
A simple “placebo” test shows that Clemens and Wither’s findings are statistically biased because they failed to account for regional differences in the effects of the Great Recession.
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