00:01
So here, the key thing is the labor becoming more mobile.
00:04
So the key is that labor more mobile implies that you have more elastic supply, right? people are more responsive over time.
00:19
So imagine we draw a labor market, which is, sorry, a wage and an amount of labor.
00:25
It's a demand for labor and a supply of labor.
00:29
And suppose that we have the minimum wage here, right? so the minimum wage creates a difference between the quantity demanded and the quantity supplied, right? and so what we get here is a one, a short run surplus.
00:55
So now, two, in long run, with no other states, right, you would normally get something like this, right? which would indicate a bigger shortage.
01:16
But this is not sustainable, right? the idea here is that in the longer run, people will move to find work.
01:32
So i would expect you would get more movement into the state without the minimum wage...