Question

What bias might authors who write articles either supporting or not supporting wage increases have?

What bias might authors who write articles either supporting or not supporting wage increases have?

Homework Answers

Answer #1

1. The negative minimum wage elasticities they report for the low-skilled and teenage workers. They vary from -0.1 to -0.3 across studies compared to zero elasticity argument. These elasticities also vary from place to place and different trades even within low-skilled jobs.

2. There exist biases in evaluating the income and substitution effects of a wage increase.

3. A better way to see this is to measure the impact of a rise in the minimum wage when some states increase the minimum wage whereas some other states with similar socio-economic background do not.

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