The Law of Demand: There Are No Exceptions or Special Cases, That's Why It's Called a Law
New Minimum Wage Could Mean Few Work Hours for Ball State Students
Ball State University students who are employed with on-campus jobs may work fewer hours this fall due to the increase in wages, a school official said. On July 24, Indiana's minimum wage increased from $6.55 to $7.25 per hour.
"There may be fewer jobs and fewer students hired, or more jobs kept at the minimum wage," Beck said about how the minimum wage increase would affect Ball State this year. "So far, it's too early to tell. The jobs constantly change."
John Knox, student employment coordinator at Ball State, said the same number of students will be hired, but they will be scheduled to work fewer hours."A reason for the fewer hours is because the budget has not increased, so the departments may have to reprioritize spending," he said.
MP: Here's another example of one of the adverse effects of an increase in the minimum wage that will NOT necessarily be captured by a change in the employment level or the unemployment rate for unskilled labor. That is, there could be the same number of workers after an increase in the minimum wage, but they might all be working a fewer number of hours.
The correct, testable statistical relationship is not increases in the minimum wage and the number of unskilled workers employed or the unemployment rate for those workers, but the relationship between increases in the minimum wage and the number of hours worked. The Law of Demand would apply more to the second relationship than the first one, and there will be a negative relationship between the minimum wage and hours worked, even though it won't necessarily translate into a negative relationship between the minimum wage and the number of unskilled workers employed.