Attention Economy


Wednesday, September 4, 2024

Monopsony Power and the Labor Market

 
As Push for Higher Minimum Wages Grows, New York Offers a Test Case
Fed research suggested higher minimum wages did not cost jobs in border counties. Industry-level analysis and real-life stories back that up — with caveats.
 
The Elusive Employment Effect of Minimum Wage
Abstract
It is hard to find a negative effect on the employment effect of rises in the minimum wage: the elusive employment effect. It is much easier to find an impact on wages. This paper argues the elusive employment effect is unlikely to be solved by better data, methodology, or specification. The reasons for the elusive employment effect are the factors contributing to why the link between higher minimum wages and higher labor costs are weaker than one might think and because imperfect competition is pervasive in the labor market.
 
 
What Difference Does a Minimum Wage Make?