On minimum wage laws:
There are many real-world examples of compensating differences. Full-fledged doctors receive hourly pay that ranges between $80 and $157. A brand-new intern earns about $34 an hour.
What do you think would happen to a hospital’s willingness to hire an intern if there were a minimum hourly wage for interns of, say, $60, $70 or $100? There would be less willingness. Worse, there would be reduced learning opportunities for brand-new doctors. Worse still is that a hospital administrator would say, “If I must pay that higher minimum hourly wage no matter whom I hire, I might as well hire the most qualified.” Thus, the higher minimum hourly wage would discriminate against the employment and skills acquisition of the least skilled intern.
-Prof Walter Williams
