a. When a state raises its minimum wage above the federal minimum, what would you expect to
Question:
a. When a state raises its minimum wage above the federal minimum, what would you expect to happen to unemployment in that state? Illustrate your answer with a graph.
b. The news article reports that the percentage of hourly paid workers paid the minimum wage or less decreased from 13.4 percent in 1979 to 4.3 percent in 2013. Would you expect the rise in the minimum wage to have a smaller effect on unemployment today than in 1979?
c. The news article reports that during the recovery from the 2008–2009 recession, wage rates grew slowly and the bottom wage rates grew slower than top wage rates, straining the budgets of low-paid workers. How would you expect this fact to have influenced the effect of the minimum wage on unemployment?
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