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Higher minimum wages are creating more jobs (with Michael Reich)

Pitchfork Economics with Nick Hanauer

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The Implications of Raising the Minimum Wage

Some economists have now observed that when a minimum wage goes up, you can also have a reallocation effect. That is to say, firms that won't survive on the minimum wage are replaced by more jobs in other sectors or in other firms. There's a very beautiful research paper in the American Economic Review about the establishment of the minimum wage in Germany. It's likely to have some of the effect here, too.

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