Economists who have studied minimum-wage laws in the United States find that a 10 percent increase in the minimum wage increases teenage unemployment by about:
A) 10 to 30 percent.
B) 5 percent.
C) 1 to 3 percent.
D) 0 percent.

Question

Quizplus · Accepted Answer

Studies have found that a 10 percent increase in the minimum wage leads to a 1 to 3 percent increase in teenage unemployment. This is because as wages increase, employers may choose to hire fewer workers or cut hours to compensate for the higher labor costs.

Economists Who Have Studied Minimum-Wage Laws in the United States