Making the Monopsony Argument for Minimum Wages More Evidence-Based—José Azar, Emiliano Huet-Vaughn, Ioana Elena Marinescu, Bledi Taska and Till Von Wachter →
The monopsony argument for minimum wages is a sound one where it applies. It is not a good argument for a one-size-fits-all minimum wage like most minimum wage policies. And it points to a particular range of magnitudes for a minimum wage as helpful, not magnitudes outside that range. It is good to see some research aimed at making the monopsony argument more concrete and clarifying where it applies.