Automation and the Minimum Wage

A higher minimum wage would provide higher income for low-wage workers but also likely reduce job opportunities. Some of the reduction in job opportunities would occur from employers automating job tasks to replace more expensive human labor. The November 2021 issue of Page One Economics® explains how a higher mandated wage may lead some firms to substitute capital for labor.

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Education Level: 9-12 College Non-educators
Subjects: AP Economics Economics
Concepts: Markets Sources of Income Employment Unemployment Productivity Physical Capital
Resource Types: Publication Lesson
Languages: English