I think I would find it very hard to update on the view that the minimum wage reduces demand for labour. Maybe if there were an extremely well done RCT showing no effect from a large minimum wage increase of $10, I would update. Incidentally, here is discussion of an RCT on the minimum wage which illustrates where the observational studies might be going wrong. The RCT shows that employers reduced hours worked, which wouldn’t show up in observational studies, which mainly study disemployment effects
I am very conscious of the fact that almost everyone I have ever tried to convince of this view on the minimum wage remains wholly unmoved. I should make it clear that I am in favour of redistribution through tax credits, subsidies for childcare and that kind of thing. I think the minimum wage is not a smart way to help lower income people.
I think I would find it very hard to update on the view that the minimum wage reduces demand for labour. Maybe if there were an extremely well done RCT showing no effect from a large minimum wage increase of $10, I would update. Incidentally, here is discussion of an RCT on the minimum wage which illustrates where the observational studies might be going wrong. The RCT shows that employers reduced hours worked, which wouldn’t show up in observational studies, which mainly study disemployment effects
I am very conscious of the fact that almost everyone I have ever tried to convince of this view on the minimum wage remains wholly unmoved. I should make it clear that I am in favour of redistribution through tax credits, subsidies for childcare and that kind of thing. I think the minimum wage is not a smart way to help lower income people.