This story is about minimum wage and its effect on employment. Hereis what the standard model will tell you, each employees paid in line with the contribution they make. But when a government imposes a minimum wage it can throw a span on the works. Because at that point it may no longer be profitable to employ this worker.
The winners for the the Nobel Prize in Economics for this year are…*drumroll*…US-based economists David Card, Joshua D. Angrist and Guido W. Imbens.
In today's episode for 13th October 2021, we’ll focus on David Card’s work today and hopefully talk about the other two tomorrow. And with that introduction out of the way, let’s get to the story, shall we?