How amusing

A piece of Worstallian analysis makes it into the New Statesman.

Although most of the left won\’t accept it, there is a reasonable discussion to be had about the effect of the minimum wage on youth unemployment. The Low Pay Commission, the body that advises ministers on the subject, recently noted \”evidence that in difficult economic circumstances the level of the minimum wage may have had an impact on the employment of young people\”. International experience suggests that a minimum wage that is 50 per cent of the average wage is harmful to employment. But the rate for 18-20 year olds (£4.08 an hour) is currently 65 per cent of the mean wage and the rate for 16-18 year olds (£3.68) is 76 per cent.

I think it\’s fair to say that the commentators don\’t like it.

2 comments on “How amusing

  1. Yesterday you linked approvingly to a piece pointing out that it’s seldom worth taking on free labour – that seems right to me: would you want to employ a stranger in your own home who came for free?

    Today you remind us of your view that driving low-paid wages down towards zero would have a useful effect on employment.

    So what sort of jobs do you think would be created at pay rates below the current minimum wage?

  2. Where does Tim say that 16-18 year olds should be paid £0?

    Surely it should be up to said 16-18 year olds to decide whether they would rather take a job paying £2.50/hr and gain a foothold in the job market than remain on the dole for the forseeable future; and not for comfortably-off job snobs to tell them that they aren’t allowed to, they have to stay NEET forever.

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