Hong Kong's Impending Natural Experiment: An Opportunity for Labor Economists
By Bryan Caplan
Kong’s Legislative Council passed the Minimum Wage Bill on Saturday
after a debate that lasted 41 hours. The law is set to take effect
early next year.
The bill gives the framework for a minimum wage
and does not stipulate actual wage. A committee appointed by the
government will recommend the minimum wage. The committee will give its
first recommendation by August to Chief Executive Donald Tsang.
unions have proposed a minimum wage of HK$33 per hour. The minimum wage
will be reviewed every two years, instead of the annual review demanded
But Hong Kong’s loss can be your gain. If you want a natural experiment on the effect of the minimum wage on employment and beyond, now’s your chance. Email Simon Lee of Hong Kong’s Lion Rock Institute for more details.