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Changing Attitudes towards Minimum Wage Debate: How is The Neoclassical Economic Theory holding in the face of a New Era of Minimum Wage Studies?

  • Krasniqi, Mikra
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    This paper compares the traditional neoclassical economic perspective with the recent empirical findings regarding minimum wage effect on employment. The comparison is done by reviewing and analyzing relevant literature and data that have recorded, over time, the changing attitudes toward the issue since the Great Depression era. By taking this approach, the argument is made that in the face of recent scientific findings and empirical research studies, the neoclassical argument that minimum wage laws have a negative effect on employment is gradually losing its appeal among scholars as well as practitioners. As a result, a new public debate is taking place on the issue, which in turn, has begun to have a transformative impact in the policymaking of minimum wage at the state and federal levels.

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    File URL: http://mpra.ub.uni-muenchen.de/8896/1/MPRA_paper_8896.pdf
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    Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 8896.

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    Date of creation: 15 Dec 2007
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    Handle: RePEc:pra:mprapa:8896
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    1. Brown, Charles, 1988. "Minimum Wage Laws: Are They Overrated?," Journal of Economic Perspectives, American Economic Association, vol. 2(3), pages 133-45, Summer.
    2. Alan B. Krueger, 2001. "Teaching the Minimum Wage in Econ 101 in Light of the New Economics of the Minimum Wage," The Journal of Economic Education, Taylor & Francis Journals, vol. 32(3), pages 243-258, January.
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