桃   花   源   

 Peach Blossom Shangri-La 

 大家盡一點力來創造一個人間樂園 ∞ Let's all help to create a Shangri-La 

 

From The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel:

"The Sveriges Riksbank Prize in Economic Sciences in Memory of Alfred Nobel 2021 was divided, one half awarded to David Card "for his empirical contributions to labour economics", the other half jointly to Joshua D. Angrist and Guido W. Imbens "for their methodological contributions to the analysis of causal relationships." "

"Using natural experiments, David Card has analysed the labour market effects of minimum wages, immigration and education. His studies from the early 1990s challenged conventional wisdom, leading to new analyses and additional insights. The results showed, among other things, that increasing the minimum wage does not necessarily lead to fewer jobs. We now know that the incomes of people who were born in a country can benefit from new immigration, while people who immigrated at an earlier time risk being negatively affected. We have also realised that resources in schools are far more important for students’ future labour market success than was previously thought."

 

A copy of David Card's seminal paper (together with Alan B. Krueger) on minimum wages can be found here: Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania

 

Abstract of a paper titled "Reallocation Effects of the Minimum Wage" to investigate the effects in Germany:

"We investigate the wage, employment, and reallocation effects of the introduction of a nationwide minimum wage in Germany that affected 15% of all employees. Based on identification designs that exploit variation in exposure across individuals and local areas, we find that the minimum wage raised wages but did not lower employment. It also led to the reallocation of low-wage workers from smaller to larger, from lower- to higher-paying, and from less to more productive establishments. This worker upgrading accounts for up to 17% of the wage increase induced by the minimum wage. Moreover, at the regional level, average establishment quality increased in more affected areas in the years following the introduction of the minimum wage."

 

Reallocation Effects of the Minimum Wage (Dustmann, et al.)