The empirical evidence on the minimum wage
A)is mixed; some studies show employment increasing, but most do not
B)shows that employment always falls when the minimum wage is increased
C)shows that employment always rises when the minimum wage is reduced
D)suggests that most labor markets are not competitive markets
E)indicates that wages are highest in industries that are subject to the minimum wage

Question

Quizplus · Accepted Answer

The empirical evidence on the minimum wage is mixed, with some studies suggesting that employment may increase after the minimum wage is increased, but most studies do not find a significant impact on employment. The impact of the minimum wage on employment can vary depending on factors such as the strength of the local labor market and the size of the minimum wage increase.

The Empirical Evidence on the Minimum Wage