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World Economic Forum:
What's the real impact on economies of the minimum wage?

9 June 2016

Economists care a great deal about the minimum wage because it is a policy prescription that increasingly affects a large portion of the workforce and because it is a clear case of government intervention, imposing a floor on the market price of labor. Minimum wages therefore offer a policy tool to test theories about how the labor market operates. In a new working paper, Alan Manning of the London School of Economics argues that a clear signal of the negative employment effects of the minimum wage is ''elusive,'' which should not be surprising if we think about the mechanisms underlying competition in the labor market.

This article was published online by the Washington Center for Equitable Growth on June 9, 2016
Link to article here

Related publications
The elusive employment effect of the minimum wage, Alan Manning, Washington Center for Equitable Growth Working Paper 2016-06, June 2016

Related links
Alan Manning webpage
Community Programme webpage
Labour Markets Programme webpage

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