This is because the additional output of the last worker hired falls by 12.5% (as he works fewer hours), but the cost of employing him falls by less than 12.5% because the fixed costs of employment are unchanged.
ECONOMIST: Labour markets
With the cost of the last worker hired now greater than his productivity, a profit-maximising firm will reduce employment and output.
Such intense competition reduces the odds that a given worker will be hired and increases the length of time he will expect to be out of a job.
ECONOMIST: Unemployment benefits: Read this shirt | The
Raising the minimum wage raises the hurdle a worker must cross to justify being hired.
FORBES: Why Raising The Minimum Wage Kills Jobs
The worker, Naomi Cohn, told The Post that she was hired and fired a number of times by Census.
FORBES: Reality Check: Census Worker Churning Is Not Buffing Hiring Numbers
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