Newsletter

Automation and the Minimum Wage


Abstract: This issue explains how a higher mandated minimum wage may lead some firms to substitute capital for labor, likely reducing job opportunities.

Keywords: automation; minimum wages; earned income tax credit; human capital; marginal costs; nominal; physical capital; price floor; surplus; technological change;

Access Documents

Authors

Bibliographic Information

Provider: Federal Reserve Bank of St. Louis

Part of Series: Page One Economics Newsletter

Publication Date: 2021-11-01