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Minimum Wage A Brief Study Of The Princeton

Minimum Wage: A Brief Study Of The Princeton Research

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Title: Minimum Wage: A Brief Study Of The Princeton Research

Essay Details:

Subject: Miscellaneous

Author: James J

Date: June 5, 2013

Level: College

Grade: A

Length: 1 / 148

Essay text:

“The minimum wage law can simultaneously increase wages and employment in markets in which employers have some monopsony power” (Lipsey, p.336). In the simplest example of a monopsony power, there is only one employer in the area. The result of paying a slightly higher wage can result in higher output and profits. “If the minimum wage is set at a competitive level, the minimum wage protects workers against monopsony power, and leads to increase in employment.” (Card & Krueger, 1995, p.3) If the economy is limited to its supply of workers, firms would have to find alternative ways to cut costs rather than lay off employees...

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