tag:blogger.com,1999:blog-5404820640426099135.post954149757659683296..comments2023-10-31T00:46:35.316+13:00Comments on Anti-Dismal: The minimum wage, againPaul Walkerhttp://www.blogger.com/profile/13731003529546075700noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-5404820640426099135.post-74375779761382458812011-05-27T22:36:32.308+12:002011-05-27T22:36:32.308+12:00And this is where the Card and Kreuger paper went ...And this is where the Card and Kreuger paper went awry.<br /><br />They looked at the effect on hiring only in the chain fast food restaurants. Not the independents. And the chains will already (yes, I've worked in the industry) be using a higher capital to labour ratio.<br /><br />So a rise in the min wage might well make employment at the chains rise: at the expense of a fall in the independents.Tim Worstallhttps://www.blogger.com/profile/13161727860817121071noreply@blogger.comtag:blogger.com,1999:blog-5404820640426099135.post-14835684034523970012011-05-27T03:26:15.896+12:002011-05-27T03:26:15.896+12:00EC: True. In the long run as the minimum wage rise...EC: True. In the long run as the minimum wage rises and the cost of technology falls, physical capital will replace human capital. So the lack of response to the minimum wage in such industries will be temporary.Paul Walkerhttps://www.blogger.com/profile/13731003529546075700noreply@blogger.comtag:blogger.com,1999:blog-5404820640426099135.post-48607269585797316832011-05-26T15:20:14.420+12:002011-05-26T15:20:14.420+12:00There is a tension here. Restaurants disproportion...There is a tension here. Restaurants disproportionately hire min wage staff, but also are unable easily to substitute capital for labour as labour price increases. Long run, computer terminals at tables replace wait staff. But not short term.Eric Cramptonhttps://www.blogger.com/profile/15831696523324469713noreply@blogger.com