Most economists agree that a binding minimum wage causes structural unemployment.

Question

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A binding minimum wage (meaning it is set above the equilibrium level) can lead to employers being unable to afford to hire as many workers, leading to structural unemployment among those who are priced out of the labor market. While there may be some debate about the magnitude of this effect, most economists agree that it exists to some degree.

Most Economists Agree That a Binding Minimum Wage Causes Structural