A few percent of job seekers as structural unemployment supports a healthy economy where people change jobs and careers to match changes in labor needs.
That doesn’t mean an increase in minimum wage increases unemployment. There are hundreds of academic studies investigating that question, and it seems the increased economic activity of low-income people having more money generates enough new jobs to at least balance whatever job cuts happen due to the higher labor costs (low-income people tend to spend all their money, so they are more effective agents of short term economic stimulus than higher-income households that tend to save some of it).
Increased unemployment can lead to decreased wages, depending on other factors. I had read your post above as claiming a multipart chain of higher minimum wage -> increased unemployment -> decreased wages, and my post was intended to address the first link (higher minimum wage -> increased unemployment), not the second.
A few percent of job seekers as structural unemployment supports a healthy economy where people change jobs and careers to match changes in labor needs.
That doesn’t mean an increase in minimum wage increases unemployment. There are hundreds of academic studies investigating that question, and it seems the increased economic activity of low-income people having more money generates enough new jobs to at least balance whatever job cuts happen due to the higher labor costs (low-income people tend to spend all their money, so they are more effective agents of short term economic stimulus than higher-income households that tend to save some of it).
i was more thinking the other way round, that an increase in unemployment decreases wages.
Increased unemployment can lead to decreased wages, depending on other factors. I had read your post above as claiming a multipart chain of higher minimum wage -> increased unemployment -> decreased wages, and my post was intended to address the first link (higher minimum wage -> increased unemployment), not the second.
i don’t think i even made the first claim, at least i didn’t intend to.