Editor’s note: This article was initially published in The Daily Gazette, Swarthmore’s online, daily newspaper founded in Fall 1996. As of Fall 2018, the DG has merged with The Phoenix. See the about page to read more about the DG.
http://vimeo.com/59200356
This week Danielle and Sam talk immigration policy, including minimum wage and the Dream Act.
Video: Aaron Dockser and Monika Zaleska/The Daily Gazette
For time reasons, my response to Danielle’s concern that enforcing the minimum wage will create unemployment was cut. For those interested, here is one of the studies I had in mind, which challenges the conventional conservative wisdom that raising the minimum wage ALWAYS increases unemployment:
http://www.nber.org/papers/w4509
The argument is not that increasing the minimum wage could NEVER increase unemployment, but rather that there is an economically optimal minimum wage, below which unemployment increases because extremely low-wage workers lose public assistance (food stamps, for example), but do not earn enough to support their families.
What this actual wage is depends on local conditions, and is for professional economists to estimate– but this study demonstrates that in at least some, if not many, regions of the United States, the minimum wage is so low that it actually disincentivizes employment.
My opinions are with Sam but I enjoyed the discussion.