Comment 28364

By A Smith (anonymous) | Posted January 30, 2009 at 02:01:18

Ryan, here's another option. Let government set a minimum wage, but then allow people the freedom to opt out if they so chose. If this was allowed to happen, workers who wanted the protection from government could have it, but those who felt they didn't need it, perhaps because they lived at home, were older, etc, could still find employment fairly easily.

If, as you say, minimum wage laws don't affect the willingness of employers to hire, then having the ability to opt out should have zero affect on employment at acceptable wages.

Lastly, there is no such thing as a monopsonistic market for labour. Workers wages are priced at what they produce and any industry that tries to keep wages artificially low, will soon find other companies that are willing to accept lower profit margins. If you disagree, please give me an example of a monopsonistic industry.

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