Well done Snippa

And I stress, whilst correlation does not prove causation, what that downward sloping line suggests is that as minimum wages increase unemployment rates go down. Undertaking such analyses is always difficult, but let’s be clear that purchasing power parity has been taken into account in this case. And that makes the link look significant to me.

From the original source:

The result is not statistically significant

Sigh.

Anyway, the calculation is entirely wrong anyway. It needs to be minimum wage with regard to median wage in that country.

8 comments on “Well done Snippa

  1. CEPR were just bollock though.

    CEPR were arguing with AEI and Cato’s data was wrong overstating the unemployment rate in some states.

    I only looked a Ireland youth unemployment because CEPR had it at 4 significant figures which sounded like bollocks and it was. CEPR’s argument depends on what period one is looking at they misrepresent that data.

  2. A request Tim please

    Can you call a spade a spade?

    Murphy is not a Snippa, an amusing and rather attractive term for vagina.

    Murphy is a cvnt pure and simple and should be described thus.

  3. Another dodgy trend line from Ritchie. I note he’s not looked at the effect on youth unemployment of minimum wages. I’d guess the story might be the opposite of what he would like.

  4. Murphy is now arguing that if you use a correlation coefficient then you are assuming people are rational. WTF?

  5. How about you take out those massive outliers, Greece and Spain? How would it look then? Took me a while to even notice them on the graph they are so out-there.

  6. If you look at the data, drawing a line of best fit is about the most pointless thing you could do

  7. I bet the correlation would look just as bad if you regressed income against unemployment, proving that there is no relationship between the 2 variables

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