Minimum wages

[Sanjeev Sabhlok <sabhlok@almaak.usc.edu>]

A very recent NBER study has confirmed what economists have always shown
to be theoretically true: that minimum wages kill jobs for low wage
workers. 

The study entitled, "Minimum Wages and Youth Employment in France and the
United States: NBER Working Paper No. 6111" by John Abowd, Francis
Kramarz, Thomas Lemieux and David Margolis, has conclusively proved this
result. If we want the poorest workers to suffer, we must impose minumum
wage laws; else abolish them.

In other words, what an earlier discussant was saying about minimum wages,
and my counter-argument to that, need to be re-visited, and we need to
finalize the view that minimum wage laws in India need to be abolished.

Thanks,

Sanjeev