How minimum wage can distort the economy

03/18/2013 | New York Times (tiered subscription model), The

The damage that minimum wage does to the economy depends largely on the gap between minimum and market wage, economics professor Casey Mulligan writes. In this abnormal employment market, the least-skilled workers are seeing wages drop. Also, the health care law will add to the cost of employing workers. "To keep constant the damage from the federal minimum wage, the federal minimum wage needs not an increase but an automatic reduction over the next couple of years in order for it to stay in parallel with market wages," Mulligan writes.

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