Minimum wage - Revision history

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Repoint 5 dead mises.org links to the archived original (automated; see Austrian Economics Wiki:Link repointing)

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	==Effects of the minimum wage==		==Effects of the minimum wage==
	A minimum wage law is compulsory [[unemployment]]. The law says: it is illegal, and therefore criminal, for anyone to hire anyone else below the level of X dollars an hour. This means, plainly and simply, that a large number of free and voluntary wage contracts are now outlawed and hence that there will be a large amount of unemployment. The minimum wage law provides no jobs; it only outlaws them; and outlawed jobs are the inevitable result.<ref name="Rothbard_minimum_wage">Murray Rothbard. [~~http~~://mises.org/econsense/ch36.asp Outlawing Jobs: The Minimum Wage, Once More] from Making Economic Sense, Chapter 36. Referenced 2010-06-24.</ref>		A minimum wage law is compulsory [[unemployment]]. The law says: it is illegal, and therefore criminal, for anyone to hire anyone else below the level of X dollars an hour. This means, plainly and simply, that a large number of free and voluntary wage contracts are now outlawed and hence that there will be a large amount of unemployment. The minimum wage law provides no jobs; it only outlaws them; and outlawed jobs are the inevitable result.<ref name="Rothbard_minimum_wage">Murray Rothbard. [https://mises.freecapitalists.org/econsense/ch36.asp Outlawing Jobs: The Minimum Wage, Once More] from Making Economic Sense, Chapter 36. Referenced 2010-06-24.</ref>

	A '''minimum wage''' leads to a reduction in the demand for labor and an increase in the supply of labor in the relevant market — usually, the market for low-skill workers. It removes the ability of some workers to compete by accepting lower wages and shuts them out of the labor force. As a result, it reduces job opportunities for these workers.		A '''minimum wage''' leads to a reduction in the demand for labor and an increase in the supply of labor in the relevant market — usually, the market for low-skill workers. It removes the ability of some workers to compete by accepting lower wages and shuts them out of the labor force. As a result, it reduces job opportunities for these workers.
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	The prohibition of certain kinds of labor contracts also discriminates against — paradoxically — the law-abiding. Just as legal prohibitions on the use and sale of drugs have lured the lawless into the drug trade, prohibitions on certain forms of labor ensure that only those lacking in scruples will be left on the demand side of the market for, say, child labor and the like.		The prohibition of certain kinds of labor contracts also discriminates against — paradoxically — the law-abiding. Just as legal prohibitions on the use and sale of drugs have lured the lawless into the drug trade, prohibitions on certain forms of labor ensure that only those lacking in scruples will be left on the demand side of the market for, say, child labor and the like.

	If restrictions, regulations, and price floors create massive deadweight losses, they also create incentives for firms and individuals to evade those restrictions, regulations, and price floors. Those with a comparative advantage in evading (or violating) the law will be most successful; thus, labor market regulation gives implicit encouragement and support to the unscrupulous. Restriction and regulation reduces the relative price of dishonesty, which means we can expect greater levels of it in the marketplace.<ref name="Caden_minimum_wage">Art Carden. [~~http~~://mises.org/daily/3478 "The Hidden Costs of a Minimum Wage"], Mises Daily, July 2009, referenced 2010-06-24.</ref>		If restrictions, regulations, and price floors create massive deadweight losses, they also create incentives for firms and individuals to evade those restrictions, regulations, and price floors. Those with a comparative advantage in evading (or violating) the law will be most successful; thus, labor market regulation gives implicit encouragement and support to the unscrupulous. Restriction and regulation reduces the relative price of dishonesty, which means we can expect greater levels of it in the marketplace.<ref name="Caden_minimum_wage">Art Carden. [https://mises.freecapitalists.org/daily/3478 "The Hidden Costs of a Minimum Wage"], Mises Daily, July 2009, referenced 2010-06-24.</ref>

	===Effects on minorities===		===Effects on minorities===
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	\|place=Auburn, Alabama		\|place=Auburn, Alabama
	\|year=2006		\|year=2006
	\|url=~~http~~://~~mises~~.org/~~document~~/~~899/Making~~-~~Economic~~-~~Sense~~		\|url=https://freecapitalists.org/books/making-economic-sense/
	\|isbn=0-945466-46-3		\|isbn=0-945466-46-3
	\|pages=133-136		\|pages=133-136
	\|chapter=Outlawing Jobs: The Minimum Wage, Once More		\|chapter=Outlawing Jobs: The Minimum Wage, Once More
	\|chapterurl=~~http~~://mises.org/econsense/ch36.asp		\|chapterurl=https://mises.freecapitalists.org/econsense/ch36.asp
	}}		}}
	* {{Cite journal		* {{Cite journal
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	* [http://www.youtube.com/watch?v=7DS0XXFdyfI Good Intentions 2of3 Minimum Wage, Licensing, and Labor Laws with Walter Williams] (video)		* [http://www.youtube.com/watch?v=7DS0XXFdyfI Good Intentions 2of3 Minimum Wage, Licensing, and Labor Laws with Walter Williams] (video)
	* [https://www.youtube.com/watch?v=siW0YAAfX6I The Truth about the Minimum Wage] (video), ''Foundation for Economic Education''		* [https://www.youtube.com/watch?v=siW0YAAfX6I The Truth about the Minimum Wage] (video), ''Foundation for Economic Education''
	* [~~http~~://mises.org/freemarket_detail.aspx?control=157 Minimum Wage, Minimum Tax] by Mark Thornton, November 1996		* [https://mises.freecapitalists.org/freemarket_detail.aspx?control=157 Minimum Wage, Minimum Tax] by Mark Thornton, November 1996
	* [http://www.thefreemanonline.org/columns/not-so-fast/teenage-unemployment/ Is Anyone Shocked by High Teenage Unemployment?] by William L. Anderson, August 2010		* [http://www.thefreemanonline.org/columns/not-so-fast/teenage-unemployment/ Is Anyone Shocked by High Teenage Unemployment?] by William L. Anderson, August 2010
	* [http://blog.mises.org/16949/the-minimum-wage-and-the-forgotten-man/ The Minimum Wage and The Forgotten Man] by Art Carden, May 2011		* [http://blog.mises.org/16949/the-minimum-wage-and-the-forgotten-man/ The Minimum Wage and The Forgotten Man] by Art Carden, May 2011

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	* [http://www.nber.org/papers/w12663.pdf Minimum Wages and Employment: A Review of Evidence From the New Minimum Wage Research] (pdf) by David Neumark and William Wascher, November 2006		* [http://www.nber.org/papers/w12663.pdf Minimum Wages and Employment: A Review of Evidence From the New Minimum Wage Research] (pdf) by David Neumark and William Wascher, November 2006
	* [http://www.nytimes.com/2010/09/27/world/africa/27safrica.html?pagewanted=all Wage Laws Squeeze South Africa’s Poor] by Celia W. Dugger, September 2010		* [http://www.nytimes.com/2010/09/27/world/africa/27safrica.html?pagewanted=all Wage Laws Squeeze South Africa’s Poor] by Celia W. Dugger, September 2010
			* [http://www.forbes.com/sites/jeffreydorfman/2014/01/30/almost-everything-you-have-been-told-about-the-minimum-wage-is-false/ Almost Everything You Have Been Told About The Minimum Wage Is False] by Jeffrey Dorfman, January 2014

	[[Category:Interventions]]		[[Category:Interventions]]

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2014-01-22T07:17:41Z

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	* [http://cafehayek.com/2013/12/some-additional-questions-for-minimum-wage-proponents.html Some Additional Questions for Minimum-Wage Proponents] by Don Boudreaux, December 2013		* [http://cafehayek.com/2013/12/some-additional-questions-for-minimum-wage-proponents.html Some Additional Questions for Minimum-Wage Proponents] by Don Boudreaux, December 2013
	* [http://www.nber.org/papers/w12663.pdf Minimum Wages and Employment: A Review of Evidence From the New Minimum Wage Research] (pdf) by David Neumark and William Wascher, November 2006		* [http://www.nber.org/papers/w12663.pdf Minimum Wages and Employment: A Review of Evidence From the New Minimum Wage Research] (pdf) by David Neumark and William Wascher, November 2006
			* [http://www.nytimes.com/2010/09/27/world/africa/27safrica.html?pagewanted=all Wage Laws Squeeze South Africa’s Poor] by Celia W. Dugger, September 2010

	[[Category:Interventions]]		[[Category:Interventions]]

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2013-12-14T18:16:36Z

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	* [http://mises.ca/posts/blog/freelance-job-sites-subvert-labor-regulations/ Freelance Job Sites Subvert Labor Regulations] by Logan Albright, September 2013		* [http://mises.ca/posts/blog/freelance-job-sites-subvert-labor-regulations/ Freelance Job Sites Subvert Labor Regulations] by Logan Albright, September 2013
	* [http://cafehayek.com/2013/12/some-additional-questions-for-minimum-wage-proponents.html Some Additional Questions for Minimum-Wage Proponents] by Don Boudreaux, December 2013		* [http://cafehayek.com/2013/12/some-additional-questions-for-minimum-wage-proponents.html Some Additional Questions for Minimum-Wage Proponents] by Don Boudreaux, December 2013
			* [http://www.nber.org/papers/w12663.pdf Minimum Wages and Employment: A Review of Evidence From the New Minimum Wage Research] (pdf) by David Neumark and William Wascher, November 2006

	[[Category:Interventions]]		[[Category:Interventions]]

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2013-12-12T19:18:08Z

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	* [http://mises.ca/posts/blog/minimum-wages-and-slavery-a-rebuttal/ Minimum Wages and Slavery: A Rebuttal] by Logan Albright, August 2013		* [http://mises.ca/posts/blog/minimum-wages-and-slavery-a-rebuttal/ Minimum Wages and Slavery: A Rebuttal] by Logan Albright, August 2013
	* [http://mises.ca/posts/blog/freelance-job-sites-subvert-labor-regulations/ Freelance Job Sites Subvert Labor Regulations] by Logan Albright, September 2013		* [http://mises.ca/posts/blog/freelance-job-sites-subvert-labor-regulations/ Freelance Job Sites Subvert Labor Regulations] by Logan Albright, September 2013
			* [http://cafehayek.com/2013/12/some-additional-questions-for-minimum-wage-proponents.html Some Additional Questions for Minimum-Wage Proponents] by Don Boudreaux, December 2013

	[[Category:Interventions]]		[[Category:Interventions]]

FormerContributor-78162cb3: /* Effects of the minimum wage */

2013-11-21T03:37:15Z

Effects of the minimum wage

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	But there are additional, hidden costs of these interventions, which are more difficult to detect but perhaps more insidious. For example, one effect of a minimum wage is to reduce the availability of on-the-[[job training]], since more resources are required simply to hire and retain a workforce. And further interventions in the labor market (for example, safety regulations and payroll taxes) make it still more costly to employ labor. These burdens together reduce a firm's willingness to hire laborers and — in the long run — must reduce the number of opportunities for those laborers to acquire valuable job skills. Far from increasing opportunities for the working poor, a minimum wage actually restricts their mobility.		But there are additional, hidden costs of these interventions, which are more difficult to detect but perhaps more insidious. For example, one effect of a minimum wage is to reduce the availability of on-the-[[job training]], since more resources are required simply to hire and retain a workforce. And further interventions in the labor market (for example, safety regulations and payroll taxes) make it still more costly to employ labor. These burdens together reduce a firm's willingness to hire laborers and — in the long run — must reduce the number of opportunities for those laborers to acquire valuable job skills. Far from increasing opportunities for the working poor, a minimum wage actually restricts their mobility.

	Firms faced with minimum wage laws often substitute skilled for unskilled labor. A report from the Show-Me Institute offers an illustrative example: Suppose that a job can be done by either three unskilled workers or two skilled workers. If the unskilled wage is $5 per hour and the skilled wage is $8 per hour, the firm will use unskilled labor and produce the output at a cost of $15. However, if we impose a minimum wage to $6 per hour, the firm will instead use two skilled workers and produce for $16 as opposed to the $18 cost of using unskilled workers. In the "official data" this shows up as a small job loss — in this case, only one job — but we see an increase in average wages to eight dollars per hour in spite of the fact that the least skilled workers are now unemployed.		Firms faced with minimum wage laws often substitute skilled for unskilled labor. A report from the Show-Me Institute offers an illustrative example: Suppose that a job can be done by either three unskilled workers or two skilled workers. If the unskilled wage is $5 per hour and the skilled wage is $8 per hour, the firm will use unskilled labor and produce the output at a cost of $15. However, if we impose a minimum wage of $6 per hour, the firm will instead use two skilled workers and produce for $16 as opposed to the $18 cost of using unskilled workers. In the "official data" this shows up as a small job loss — in this case, only one job — but we see an increase in average wages to eight dollars per hour in spite of the fact that the least skilled workers are now unemployed.

	There is also a hidden social cost in minimum wage policies. Debates over a minimum wage erode social fabric by placing workers and their employers in opposition to one another. While there have been many legitimate reasons for some tension to exist between firms and workers, minimum wage policies set them in unnecessary opposition to one another over employment contracts, which are by nature cooperative and mutually beneficial. Encouraging the view that employment is a raw deal has created needless acrimony. At the margin, this intimidates people and discourages some from becoming employers themselves.		There is also a hidden social cost in minimum wage policies. Debates over a minimum wage erode social fabric by placing workers and their employers in opposition to one another. While there have been many legitimate reasons for some tension to exist between firms and workers, minimum wage policies set them in unnecessary opposition to one another over employment contracts, which are by nature cooperative and mutually beneficial. Encouraging the view that employment is a raw deal has created needless acrimony. At the margin, this intimidates people and discourages some from becoming employers themselves.

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2013-09-08T16:47:11Z

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	* [http://mises.ca/posts/blog/the-minimum-wage-myth-that-wont-die/ The Minimum Wage Myth that Won’t Die] by Logan Albrigh, August 2013		* [http://mises.ca/posts/blog/the-minimum-wage-myth-that-wont-die/ The Minimum Wage Myth that Won’t Die] by Logan Albrigh, August 2013
	* [http://mises.ca/posts/blog/minimum-wages-and-slavery-a-rebuttal/ Minimum Wages and Slavery: A Rebuttal] by Logan Albright, August 2013		* [http://mises.ca/posts/blog/minimum-wages-and-slavery-a-rebuttal/ Minimum Wages and Slavery: A Rebuttal] by Logan Albright, August 2013
			* [http://mises.ca/posts/blog/freelance-job-sites-subvert-labor-regulations/ Freelance Job Sites Subvert Labor Regulations] by Logan Albright, September 2013

	[[Category:Interventions]]		[[Category:Interventions]]

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2013-09-05T21:51:13Z

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	* [http://fff.org/explore-freedom/article/the-minimum-wage-harms-the-most-vulnerable/ The Minimum Wage Harms the Most Vulnerable] by Sheldon Richman, February 2013		* [http://fff.org/explore-freedom/article/the-minimum-wage-harms-the-most-vulnerable/ The Minimum Wage Harms the Most Vulnerable] by Sheldon Richman, February 2013
	* [http://www.forbes.com/sites/artcarden/2013/07/30/would-a-higher-minimum-wage-help-mcdonalds-workers/ Would A Higher Minimum Wage Help McDonald's Workers?] by Art Carden, July 2013		* [http://www.forbes.com/sites/artcarden/2013/07/30/would-a-higher-minimum-wage-help-mcdonalds-workers/ Would A Higher Minimum Wage Help McDonald's Workers?] by Art Carden, July 2013
			* [http://mises.ca/posts/blog/the-minimum-wage-myth-that-wont-die/ The Minimum Wage Myth that Won’t Die] by Logan Albrigh, August 2013
			* [http://mises.ca/posts/blog/minimum-wages-and-slavery-a-rebuttal/ Minimum Wages and Slavery: A Rebuttal] by Logan Albright, August 2013

	[[Category:Interventions]]		[[Category:Interventions]]

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2013-08-03T06:47:44Z

Jérôme Alexandre: /* Links */ "Le SMIC : machine à exclure" by Pascal Salin

2013-05-19T14:20:52Z

Links: "Le SMIC : machine à exclure" by Pascal Salin

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	* {{md\|3477\|Paid and Unpaid Labor\|[[Art Carden]]\|Thursday, July 30, 2009}}		* {{md\|3477\|Paid and Unpaid Labor\|[[Art Carden]]\|Thursday, July 30, 2009}}
	* {{md\|5311\|Do We Really Need a Minimum Wage?\|Charlie Virgo\|Tuesday, May 24, 2011}}		* {{md\|5311\|Do We Really Need a Minimum Wage?\|Charlie Virgo\|Tuesday, May 24, 2011}}
			* {{cite web
			\|url=http://www.catallaxia.org/wiki/Pascal_Salin:Le_SMIC_:_machine_%C3%A0_exclure
			\|title=Le SMIC : machine à exclure
			\|last=Salin\|first=Pascal\|authorlink=Pascal Salin
			\|publisher=Catallaxia
			\|language=French
			\|accessdate=
			}}
	* [http://www.youtube.com/watch?v=7DS0XXFdyfI Good Intentions 2of3 Minimum Wage, Licensing, and Labor Laws with Walter Williams] (video)		* [http://www.youtube.com/watch?v=7DS0XXFdyfI Good Intentions 2of3 Minimum Wage, Licensing, and Labor Laws with Walter Williams] (video)
	* [https://www.youtube.com/watch?v=siW0YAAfX6I The Truth about the Minimum Wage] (video), ''Foundation for Economic Education''		* [https://www.youtube.com/watch?v=siW0YAAfX6I The Truth about the Minimum Wage] (video), ''Foundation for Economic Education''

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	\|url=http://www.cato.org/doc-download/sites/cato.org/files/serials/files/cato-journal/1985/5/cj5n1-6.pdf		\|url=http://www.cato.org/doc-download/sites/cato.org/files/serials/files/cato-journal/1985/5/cj5n1-6.pdf
	}}		}}

	~~===Links===~~
	* {{wplink}}
	* {{md\|2130\|Mythology of the Minimum Wage\|D.W. MacKenzie\|Wednesday, May 03, 2006}}
	* {{md\|3261\|The Minimum Wage, Discrimination, and Inequality\|[[Art Carden]]\|Monday, January 19, 2009}}
	* {{md\|3477\|Paid and Unpaid Labor\|[[Art Carden]]\|Thursday, July 30, 2009}}
	* {{md\|5311\|Do We Really Need a Minimum Wage?\|Charlie Virgo\|Tuesday, May 24, 2011}}
	* {{cite web		* {{cite web
	\|url=http://www.catallaxia.org/wiki/Pascal_Salin:Le_SMIC_:_machine_%C3%A0_exclure		\|url=http://www.catallaxia.org/wiki/Pascal_Salin:Le_SMIC_:_machine_%C3%A0_exclure
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	\|accessdate=		\|accessdate=
	}}		}}

			===Links===
			* {{wplink}}
			* {{md\|2130\|Mythology of the Minimum Wage\|D.W. MacKenzie\|Wednesday, May 03, 2006}}
			* {{md\|3261\|The Minimum Wage, Discrimination, and Inequality\|[[Art Carden]]\|Monday, January 19, 2009}}
			* {{md\|3477\|Paid and Unpaid Labor\|[[Art Carden]]\|Thursday, July 30, 2009}}
			* {{md\|5311\|Do We Really Need a Minimum Wage?\|Charlie Virgo\|Tuesday, May 24, 2011}}
	* [http://www.youtube.com/watch?v=7DS0XXFdyfI Good Intentions 2of3 Minimum Wage, Licensing, and Labor Laws with Walter Williams] (video)		* [http://www.youtube.com/watch?v=7DS0XXFdyfI Good Intentions 2of3 Minimum Wage, Licensing, and Labor Laws with Walter Williams] (video)
	* [https://www.youtube.com/watch?v=siW0YAAfX6I The Truth about the Minimum Wage] (video), ''Foundation for Economic Education''		* [https://www.youtube.com/watch?v=siW0YAAfX6I The Truth about the Minimum Wage] (video), ''Foundation for Economic Education''
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	* [http://www.cato.org/doc-download/sites/cato.org/files/pubs/pdf/PA701.pdf The Negative Effects of Minimum Wage Laws] (pdf) by Mark Wilson, June 2012		* [http://www.cato.org/doc-download/sites/cato.org/files/pubs/pdf/PA701.pdf The Negative Effects of Minimum Wage Laws] (pdf) by Mark Wilson, June 2012
	* [http://fff.org/explore-freedom/article/the-minimum-wage-harms-the-most-vulnerable/ The Minimum Wage Harms the Most Vulnerable] by Sheldon Richman, February 2013		* [http://fff.org/explore-freedom/article/the-minimum-wage-harms-the-most-vulnerable/ The Minimum Wage Harms the Most Vulnerable] by Sheldon Richman, February 2013
			* [http://www.forbes.com/sites/artcarden/2013/07/30/would-a-higher-minimum-wage-help-mcdonalds-workers/ Would A Higher Minimum Wage Help McDonald's Workers?] by Art Carden, July 2013

	[[Category:Interventions]]		[[Category:Interventions]]