Tuesday, March 19, 2013

Bryan Caplan on general equilibrium effects of immigration and the minimum wage


We've been over this ground many times before, but I thought you all would be interested. He makes the point I have that the general equilibrium effects probably wouldn't help the employment of minimum wage workers. He still seems to miss that there's nothing funny about the demand curves if the issue at hand is monopsony.

The first commenter is skeptical of the counterfactual Card on immigration, as am I.

His point four is odd, though. He objects to the general equilibrium effects because the income of employers goes down. The whole point, though, is that the MPC of minimum wage workers and the MPC of employers are quite different.

No comments:

Post a Comment

All anonymous comments will be deleted. Consistent pseudonyms are fine.