Lawrence Lux posts the Minimum Wage debate.
"The entire Concept of Minimum Wage should be reevaluated by Keynesians, as the most notable part is ignored. This consists of the fact that Wage levels are differentiated by Skill levels; alteration of the Minimum Wage brings on the Shelving effect, where labor insists on separate Wage levels based upon Skill level"
Lawrence is appealing to Quantum analysis. If we set the Minimum Wage level as the smallest quantity of observable wage difference, then we can construct an N length labor production system that assigns wages as binary multiples of the standard wage unit. First back to out the distribution of wages from the data then assign wage quanta according to the Shannen channel formula.
I pointed this out on Thoma's blog on the subject, by noting that the Minimum Wage might just be used as an accounting standard. It makes planning simpler by defining a preset range of wages at each skill level. The minimum wage is likely a wage standard more than a wage regulation.
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