Amazon.com Inc. warehouse workers in Minnesota plan to strike during the online retailer’s summer sales extravaganza, a sign that labor unrest persists even after the company committed to paying all employees at least $15 an hour last year.
Arindrajit DubeFinally, the trifecta of (1) large wage increases, (2) large reduction in quits, (3) small changes in jobs resulting from MW increases is best understood from a model of frictional, monopsonistic labor market.
Arindrajit DubeSo Russ, check out this AER-Insight article showing experimental evidence of monopsony power in a setting (online labor market) where one might expect to have low degree of search frictions!
The federal minimum wage is $7.25 per hour for most workers. In this report, CBO examines how increasing the federal minimum wage to $10, $12, or $15 per hour by 2025 would affect employment and family income.
Arindrajit DubeA thread on the @USCBO report on minimum wage increase.
Tl;dr: the CBO report suggests a $15 minimum wage will raise wages much more than reduce jobs. However, I think the employment estimates it uses are too pessimistic.