[PEN-L:1744] Re: Minimum wages in real terms

[dassbach@xxxxxxx (Carl H.A. Dassbach)]

>Remember that an increase in minimum wages will encourage technical
>change which will promote productivity.

It might also encourage foreign investment in low wage regions but this
doubtful becuase industries which pay minimum wage are unlikely to pursue
this strategy.  On the other hand, it would defintely encoruage the
increased use of workers which, for various reasons, fall outside the
minimum wage laws, e.g. undocumented aliens.
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Carl H.A. Dassbach                             E-mail:   DASSBACH@xxxxxxx
Dept. of Social Sciences                      Phone:   (906)487-2115
Michigan Technological University         Fax:       (906)487-2468
Houghton,  MI   49931    USA