Asked by Gavin VandenTop on Jun 19, 2024
Verified
Studies by economists have found that a 10 percent increase in the minimum wage decreases teenage employment 10 percent.
Teenage Employment
The participation of individuals aged 13 to 19 in the workforce, whether part-time or full-time, often impacted by minimum age laws and schooling requirements.
Minimum Wage
The smallest amount of money that can be legally paid to employees by their employers.
- Digest the effects that establishing binding minimum wages has on the dynamics of the labor market, with a specific emphasis on employment metrics.
Verified Answer
MC
Marie CynetteJun 20, 2024
Final Answer :
False
Explanation :
Most studies by economists show that a 10 percent increase in the minimum wage leads to a much smaller decrease in teenage employment, often estimated at around 1 to 3 percent, not 10 percent. The impact varies across studies, but the consensus is that the effect is significantly less than a one-to-one relationship.
Learning Objectives
- Digest the effects that establishing binding minimum wages has on the dynamics of the labor market, with a specific emphasis on employment metrics.