Is the 'minimum wage causes job loss' idea wrong?
It's not that the theory is entirely 'wrong,' but our empirical findings suggest it's often an oversimplification. The traditional model predicts clear negative employment effects, but real-world data, analyzed through methods like natural experiments, often shows much smaller or even negligible impacts. The degree to which a minimum wage increase affects employment appears to depend heavily on the specific market conditions, the size of the increase, and other prevailing economic factors.
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