Which of the following supports the contention that the differences in the minimum wage can explain differences in unemployment rates among young people across countries?

Question

Quizplus · Accepted Answer

Lower minimum wages as a percentage of the average wage, as in the United States, could lead to lower unemployment rates among young people since employers can afford to hire more workers at a lower cost. Higher minimum wages, as in France or Spain, could result in higher unemployment rates as employers may not be able to afford to hire as many workers at the mandated wage.

Which of the Following Supports the Contention That the Differences