Question

In: Economics

Here is the name of the article you need to use, you can copy and paste...

Here is the name of the article you need to use, you can copy and paste it and it will come right away:

They Said Seattle’s Higher Base Pay Would Hurt Workers. Why Did They Flip?

1) Briefly summarize the main points of the article

2) Who benefitted from the minimum wage increase? Who was made worse off?

3)Explain how the researchers reconciled their old results with their new results.

4) How convinced are you that the researchers isolated the effect of the minimum wage increase? Explain your reasoning.

Solutions

Expert Solution

1) Seattle had passed an ordinance that allows the minimum wage $ 15/- per hour in order to ensure the individual growth and provide economic security but the researchers at university of Washington ​kept on saying the negative points about the wage hike but they all proved to be wrong in every step hence they flipped the word in their next publications.initially these people criticised the government for not mentioning about the unemployment and closing the. start-ups,restaurants and other businesses and they even blamed the minimum wage hike would be the reason for all these problems in the city but all these proved wrong when the ordinance passes as the unemployment problem decreased and new restaurants were opened interestingly owing to the ordinance.

2)the researchers remarked that the new Seattle wage hike benefitted the experienced and skilled people and became a bane to unskilled and inexperienced labour as the working hours got decreased after the issue of ordinance as most companies employed only the skilled labour to work less and produce more owing to the ordinance.as a result unemployment still prevailed in the city.

3)the researchers found that when compared to other cities in seattle minimum wage increase helped ensure a higher pay for the experienced at the cost of reduced opportunities to the inexperienced they argued

4)since 2016 the researchers of Washington university have been arguing that minimum wage increase brought both good and bad results for the workers in the city they didn't argue it in favour of the ordinance at any stage.they thought their hypothesis (the ordinance would invite negative growth rather than positive) regarding minimum wage increase would be true but they were proven wrong hence they clearly wanted to isolate the minimum wage increase by some flip-flops in every paper they published.


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