Friday, January 05, 2007

If you want to read what the evidence really is 

Russ Roberts has done a good service in providing a summary of the literature on the minimum wage. He tries to avoid taking a dig at those who push for an increase but can't resist this one:
I find it strange that those who favor an increase in the minimum wage often are the same people who complain about outsourcing, or the moving of factories to low-wage countries or the greed of corporations such as Wal-Mart eager to squeeze every last penny out of their employees by paying only what the market will bear. Surely, such greedy and enterprising organizations will find a way to avoid the impact of the minimum wage by hiring fewer workers and finding other ways to reduce the cost of workers who are suddenly more expensive yet no more productive. I'm a big believer in the profit motive. I again commend to you this article at Coyote Blog that shows how a real business responds to a sudden increase in the cost of labor.
The Coyote blog link is worthwhile.