According to Nobel Laureate Edmund Phelps, minimum wages cause higher unemployment, but wage subsidies cause higher employment.

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Nobel Laureate Edmund Phelps has argued that minimum wages can lead to higher unemployment because they increase the cost of labor for employers, making it less attractive to hire workers. However, he suggests that wage subsidies, which provide financial incentives to employers to hire workers at higher wages, can increase employment by reducing the burden of labor costs.

According to Nobel Laureate Edmund Phelps, Minimum Wages Cause Higher