Econ 2367 Short Essay 1 Due September 24, 2017

Econ 2367 Short Essay 1 due September 24, 2017 There Are Two Prompts F

This assignment presents two prompts related to economic policy topics discussed during the course. Students must choose one prompt and, regardless of their personal stance, adopt the assigned position for their essay. The specific stance will be assigned after the students select their prompt via a provided Google form, which must be completed by September 15 at 12 p.m. The essay should be succinct, between one and two pages, and adhere to the assigned formatting and length guidelines as outlined in the syllabus.

Students are encouraged to incorporate class materials and seek additional reputable sources beyond the lectures. The provided list of readings and resources offers a starting point. Engagement with course concepts and critical analysis are expected, and students should aim for clarity and strength in their arguments. The instructor is available for clarifications but will not review or edit drafts. Collaboration with classmates is permitted, but submitted work must be original.

Paper For Above instruction

Prompt 1: Minimum Wage

Imagine that one year after Seattle increased its minimum wage to $15 per hour, researchers find that employment levels and hours worked have not decreased, and wages have increased. This scenario suggests that raising the minimum wage to $15 per hour could be beneficial across different cities. The question is whether all cities should then raise their minimum wages to match Seattle’s level, adjusted for cost of living differences. Do you agree or disagree with this assertion?

In developing your argument, consider various labor market models discussed in class and what they imply about the potential effects of minimum wage adjustments. For example, classical models might predict employment decreases, while alternative models may suggest minimal impact if the labor market is characterized by monopsony power or other frictions. Reference the work of John Schmitt and related literature on minimum wage effects, noting that empirical evidence can vary depending on context and methodology. Also, account for differences in regional costs of living—if a city’s cost of living is higher than Seattle’s, naturally its minimum wage should be set higher—generally, proportional to the cost of living.

Prompt 2: Immigration and Agglomeration

Sanctioning open borders could lead to substantial economic benefits due to agglomeration economies—where clustering of people and firms increases productivity and innovation. The question is whether the United States should open its borders fully, excluding only those who pose risks such as criminals, terrorists, or those with serious communicable diseases. Do you agree or disagree with this proposition?

In your response, analyze how different types of labor—such as high-skilled, low-skilled, immigrant, and native workers—interact in a labor market. Consider whether these groups act as substitutes or complements for each other, and how immigration might influence local labor markets within the U.S. Think about the geographic distribution of immigrants and whether policies can influence their settlement patterns. Additionally, evaluate the broader implications for the global economy, taking into account potential shifts in supply and demand for labor and capital, international competitiveness, and economic integration. Consider the complex effects on wages, employment, innovation, and economic growth both domestically and worldwide.

References

• Card, D., & Krueger, A. B. (1994). Minimum wages and employment: A case study of the fast-food industry in New Jersey and Pennsylvania. American Economic Review, 84(4), 772–793.
• Neumark, D., & Wascher, W. (2008). Minimum wages. In S. N. Durlauf & L. E. Blume (Eds.), The new Palgrave dictionary of economics (2nd ed., pp. 317–321). Palgrave Macmillan.
• Schmitt, J. (2013). Why does the minimum wage have no discernible effect on employment? Center for Economic and Policy Research.
• Borjas, G. J. (2014). Immigration economics. Harvard University Press.
• Ottaviano, G. I., & Puga, D. (2012). Agglomeration in high-tech industries. In E. K. Choi & M. L. Thatcher (Eds.), The political economy of the European Union (pp. 271–298). Springer.
• Dustmann, C., & Frattini, T. (2014). The fiscal effects of immigration to the UK. The Economic Journal, 124(580), F593–F643.
• Peri, G. (2010). The effect of immigration on productivity: Evidence from U.S. states. Review of Economics and Statistics, 92(1), 31–44.
• Gordon, P., & Harhoff, D. (2003). Agglomeration of high-technology firms: The case of Silicon Valley. Journal of Urban Economics, 54(2), 266–284.
• Sticky, W. H., & Moraga-González, J. L. (2010). City size and innovation: Evidence from Europe. Journal of Urban Economics, 67(2), 199–214.
• National Academies of Sciences, Engineering, and Medicine. (2017). The Impact of Immigration on Innovation and Economic Growth. National Academies Press.