Based on the video The minimum wage: does it hurt workers? by The
Economist (https://www.youtube.com/watch?v=8H4yp8Fbi-Y) and what was
taught in the lecture, discuss the arguments for and against a minimum wage.
In particular, consider the following aspects:
- What does the (neo-)classical theory of demand and supply tell us about
a (binding) price floor on wages? - How does the elasticity of labor demand affects the unemployment rate
under a minimum wage? - What are the empirical findings by David Card and Alan Krueger? How
is this different from the standard prediction of neoclassical theory? - How does the theory of Monois explain those findings?
- How did the two studies on the Seattle minimum wage rise in 2015 give
seemingly contradictory results? - Assume you are working as a waiter/waitress in a restaurant. How would
you feel about the minimum wage?