The own-wage demandelasticity is -0.40 forunskilledworkers and -0.53 forskilled workers while the substitution elasticity between the two typesof workers is 0.26.
If we raise the federal minimum wage and demand the 1% pay their fair share to reduce income inequality, we will boost our economy, help small business grow and create jobs.
If the alleged benefits were voted down, there would be an immediate wage-demand adjustment on the part of most unemployed on the way to them finding work at wages that reflect actual demand for labor in the marketplace.
Since the Thatcher government's tussle with the unions, workers have much less power to demandwage increases, which means that inflation is less likely to get out of control.