Question

An article in the Wall Street Journal noted that a study by the U.S. Congressional Budget Office "estimated raising the minimum wage to $\$ 10.10$ an hour would reduce U.S. employment by 500,000 but lift 900,000 Americans out of poverty." Why might raising the minimum wage reduce employment? How would it raise some people out of poverty? What effect might these estimates have on a normative analysis of the minimum wage?

Name: An article in the Wall Street Journal noted that a study by the U.S. Congressional Budget Office "estimated raising the minimum wage to $ 10.10 an hour would reduce U.S. employment by 500,000 but lift 900,000 Americans out of poverty." Why might raising the minimum wage reduce employment? How would it raise some people out of poverty? What effect might these estimates have on a normative analysis of the minimum wage?
Uploaded: 2023-02-13T19:20:39-08:00
Duration: 2 min 20 s
Channel: Andrew Davis

          An article in the Wall Street Journal noted that a study by the U.S. Congressional Budget Office "estimated raising the minimum wage to $\$ 10.10$ an hour would reduce U.S. employment by 500,000 but lift 900,000 Americans out of poverty." Why might raising the minimum wage reduce employment? How would it raise some people out of poverty? What effect might these estimates have on a normative analysis of the minimum wage?

Added by Spencer W.

Principles of Economics

Gregory Mankiw 8th Edition

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Solved by Expert Andrew Davis

02/13/2023

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An article in the Wall Street Journal noted that a study by the U.S. Congressional Budget Office "estimated raising the minimum wage to $\$ 10.10$ an hour would reduce U.S. employment by 500,000 but lift 900,000 Americans out of poverty." Why might raising the minimum wage reduce employment? How would it raise some people out of poverty? What effect might these estimates have on a normative analysis of the minimum wage?