Minimum wages cause unemployment theory

Assignment Help Financial Management

Reference no: EM131184710

It is commonly taught in introductory micro economics courses that minimum wages cause unemployment.

The federally mandated minimum wage is $7.25, but approximately one-third of states have higher state-mandated minimum wages.

Why can't you test the "minimum wages cause unemployment" theory by simply comparing unemployment rates across states with different minimum wages?

Can you think of a better way to test it?

Reference no: EM131184710

Questions Cloud

Analyze the characteristics of effective leadership : Analyze the characteristics of effective leadership in a variety of countries and cultures, Analyze characteristics, skills, and strategies for effective leadership in a global society and Analyze characteristics of leaders of the future

What would you say to a vendor : What would you say to a vendor that tells you that his system runs 50% of the SPEC benchmark kernel programs twice as fast as the leading competitive system

Investigate effect of education spending on housing prices : When performing regression analysis, she controls for average January and July temperatures. Why is she doing this?

How would you record the performance metrics for system : How would you record the performance metrics for System X model Q - In order to complete your research, you call the people at System X computer company and ask when they plan to publish benchmark results for the Model Q.

Minimum wages cause unemployment theory : Why can't you test the "minimum wages cause unemployment" theory by simply comparing unemployment rates across states with different minimum wages?

What other organizations would need good performance : Besides the retail business sector, what other organizations would need good performance from a transaction-processing system. Justify your answer.

Prove that new high schools cause higher sat scores : Is this enough evidence to prove that new high schools cause higher SAT scores, or can you think of an alternative explanation for Oscar's data?

Panel data to conduct regression analysis : How could this provide an improvement over cross-sectional regression analysis of the type described in the text?

Discussion of the physical aspects of disk performance : In our discussion of the physical aspects of disk performance, we stated that replacing 7200 RPM disks with 10,000 RPM disks can bring a 10% to 50% performance improvement.

User Account

All Pages