atans1

More evidence PAP talking cock on minimum wages

In Economy on 15/06/2018 at 6:57 am

The mounting evidence that minimum wages do not seem to reduce employment

One of these is a study by economists Doruk Cengiz, Arindrajit Dube, Attila Lindner and Ben Zipperer, which looked at state-level evidence and found no negative effect of mandated pay increases on employment. They found that minimum wage hikes tend to decrease the number of jobs just below the new cutoff, but increase the number above the line — implying that the wage hike isn’t killing jobs, but simply giving people raises.

Now, Kevin Rinz and John Voorheis, a pair of researchers from the U.S. Census Bureau, have an even more comprehensive study with even more detailed evidence. Looking at data on individual earners from 1991 through 2013 — a very long time period — the authors take careful account of factors like mobility and transitions into and out of the labor force. They find that minimum-wage increases tend to raise incomes for people at the bottom of the distribution, and that the effect doesn’t fade with time. Meanwhile, they find that the probability of people losing their income entirely — i.e., unemployment or dropping out of the labor force — isn’t significantly affected by minimum-wage increases.

https://www.bloomberg.com/view/articles/2018-04-05/supply-and-demand-does-a-poor-job-of-explaining-depressed-wages

Interesting the writer Noah Smith says we should change our standard model of the labour market. Employer market power seems to be the rule, not the exception.

Well in S’pore where employers have have their fill of FTs (They KPKB that govt doesn’t give them the right to bring in more) and you can see why productivity is so bad.

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