Published in Dawn, October 27th, 2021.
The Nobel Prize for Economics for the year 2021 awarded to David Card for his contributions to scholarship on minimum wages has vindicated trade unions, labour and human rights advocates and pro-labour economists the world over. Card’s work in 1994 refuted the long-held hypothesis that increases in minimum wage reduces employment. At the time, 90 per cent of professional economists believed that a hike in minimum wage was bad for the economy. In Myth and Measurement: The New Economics of the Minimum Wage, Card and Alan Krueger presented evidence that minimum wage hike has either no effect or a positive effect on employment.
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