CALIFORNIA STATE UNIVERSITY, HAYWARD

COLLEGE OF BUSINESS AND ECONOMICS

MANAGERIAL ECONOMICS

GUIDELINES FOR CASE ANALYSIS

The Urban League and the Youth Subminimum Age

I. MAIN ISSUES

1. Arguments for and against a Youth Subminimum Wage:

(ii) What is the rationale for the youth subminimum wage?

(i) Who will gain and who will lose from the passing of a youth subminimum age?

2. The Effects of the Minimum Wage: Theory

(i) What are the intended and unitended consequences of the minimum wage? Show this with a demand and supply of labor model.

(ii) How is the minimum wage model under conditions of (a) competition, (b) monopsony, and © racial discrimination?

3. Effects of the Minimum Wage: Empirical evidence

(i) What is the evidence presented in the case on the effects of the minimum wage (see Ex. 4, 6, 9, 10, 11, 12, 13, 14)?

(ii) What is the impact of the minimum wage on employment, income, racial discrimination, income distribution, etc.?

4. Extensions to the Subminimum Wage

(i) What are the likely effects of the subminimum wage and how will they impact the effects of the minimum wage?

(ii) What is the evidence in the case to support or oppose a subminimum wage (see case evidence)?

II. ALTERNATIVES (EVALUATE EACH)

1. Introduce the Subminimum Wage

2. Do not introduce the Subminimum Wage

3. Abolish the minimum wage

4. Do nothing

Please use the data in the case to support your arguments on these issues and look at the questions at the end of the case.