Krugman on the minimum wage


 

I am always happy to link to interesting new arguments which have not been considered on this blog before:

…the usual notion that minimum wages and the Earned Income Tax Credit are competing ways to help low-wage workers is wrong. On the contrary, raising the minimum wage is a way to make the EITC work better, ensuring that its benefits go to workers rather than getting shared with employers. This actually is Econ 101, but done right: given a second-best world in which you use imperfect tools to help deserving workers, two tools together can produce a better outcome than either one on its own.

He is drawing from this Rortybomb post.  For other, different arguments, here is Angus and here is David Henderson.

Krugman on the minimum wage
Tyler Cowen
Sat, 16 Feb 2013 20:34:35 GMT

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