Question
The city of Manchester is proposing to increase the minimum wage paid by employers located in the city. Policy advisors argue that evidence from Hungary
The city of Manchester is proposing to increase the minimum wage paid by employers located in the city. Policy advisors argue that evidence from Hungary - in Lindner, Aila and Peter Harasztosi (2019). "Who Pays for the Minimum Wage?" American Economic Review, vol. 109, n. 8. - shows that increasing the minimum wage does not lead to large reductions in employment. Explain why the evidence in that paper suggests that an increase in the minimum wage for the city of Manchester only is likely to lead to larger reductions in employment in the city than with a national increase in the minimum wage.
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