Minimum Wage in the UK - Reality V Theory

[[Phill]]

Ok. Ill try and make this brief, because this is as much a question as anything.

In the UK the minimum wage bill was introduced in 1997 - and came into law in 1998.

At the time there was te usual arguments about how the min wage introduction will create more unemployment.

This has been proven to not be the case. Both after its introduction (though there was an initial market reaction) and therafter on its increases.

When anyone trys to use the UK as a case study it is often shot down as being irrelivent to the US.

I believe that at a certian point a higher min wage will harm jobs, but at more than £5 we have yet to find that figure.

So, lets cut through the BS - why do you guys believe this to be an irrelivent point in arguing the case of the minimum wage?

What is different in what is done over here than what is done in the US?

Im no economist, so my theoretical knowledge is pretty low, but i do know the min wage didnt collapse the UK economy.

[Dan.]

I'll stop posting on 2p2 the day that an ACist accepts real data over theory.

[MidGe]

[ QUOTE ]
'll stop posting on 2p2 the day that an ACist accepts real data over theory.

[/ QUOTE ]

[img]/images/graemlins/smile.gif[/img] nh

[pvn]

[ QUOTE ]
I'll stop posting on 2p2 the day that an ACist accepts real data over theory.

[/ QUOTE ]

I pushed all in on the first hand of the WSOPME with 72o. I got called by AA. Flop came 772.

I'll stop posting on 2p2 the day that Sklansky accepts REAL DATA over theory.

PS: where's the control group?

[clowntable]

I can only assume that one of the reasons why US and UK might be different is that there is more of a hire&fire mindset in the US.
With this I tend to think that employees act more like the proposed theories and thus a minimum wage is more harmfull.
I haven't really given this a lot of thought so I might be way off base.
But anyone defending the minimum wage is more off base anyways :P

From a politicians point of view a minimum wage proposal might be good though because there seem to be more people in any given country that are afraid of the future than people that understand economics.
So a good strategy for a politician might be "propose minimum wage"+spread fear (globalization etc.)

[hmkpoker]

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I'll stop posting on 2p2 the day that an ACist accepts real data over theory.

[/ QUOTE ]

I'm still waiting to see some real (read: scientifically meaningful) data.

[xorbie]

The thing about social sciences is that everything is complicated enough that you can always argue that your side is right.

[WillMagic]

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The thing about social sciences is that everything is complicated enough that you can always argue that your side is right.

[/ QUOTE ]

Social sciences is complex enough to be subject to sophistry, sure. Mooro/Prop are great examples of that. But it is not so complex as to be incomprehensible to human beings nor impenetrable to logic.

Phill, your example is irrelevant not because of any inherent differences between the British and American economies, but because there is no control in your study. Empirical induction can reliably determine causation only when you can repeatedly isolate one specific variable.

[hmkpoker]

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Phill, your example is irrelevant not because of any inherent differences between the British and American economies, but because there is no control in your study. Empirical induction can reliably determine causation only when you can repeatedly isolate one specific variable.

[/ QUOTE ]

Three cheers for Will.

[AlexM]

[ QUOTE ]
[ QUOTE ]
I'll stop posting on 2p2 the day that an ACist accepts real data over theory.

[/ QUOTE ]

I'm still waiting to see some real (read: scientifically meaningful) data.

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I posted some in this thread. It clearly shows unemployment increasing alongside minium wage. [img]/images/graemlins/wink.gif[/img]