Questions about the minimum wage
This is by kebko, from the MR comments section:
Is there any other issue where any economists insist that price floors benefit the lowest added-value suppliers?
Not that I know of, although feel free to correct that impression in the comments of this post. This is one reason, by the way, why I do not find the monopsony explanations of minimum wage benefits convincing. Monopsony should not be particularly strong across labor, if anything the contrary (more employers hire labor than say aluminum).
If labor does differ from other factors of production, one feature is that labor can “decide to work harder.” So perhaps a minimum wage pushes people into tougher jobs. As I’ve argued in the past, this may be bad for them but good for their families.
David Henderson offers some remarks about the minimum wage and monopsony.