10.2190/CN.32.1.f 37236Q30N0555WJ0 5 A Note on Teaching Minimum Wages in Economics and Business Courses 51 56 20080429 20080429 20080429 20080429 37236Q30N0555WJ0.pdf http://baywood.metapress.com/link.asp?target=contribution&id=37236Q30N0555WJ0 1 David A. Dilts Hedayeh Samavati Indiana University, Purdue University Fort Wayne Since the Krueger article of 2001 concerning the teaching of minimum wages in the principles of economics, "the new economics" seems not to have been widely adopted by textbook authors. A majority of principles of economics textbooks have not adopted the recommendation of Krueger in their presentations of the minimum wage. Perhaps there is a reluctance to take the discussion of the labor market or of government intervention past the purely competitive model; however, such reluctance misses an opportunity to bring relevance to the principles course. The debate concerning poverty, the working poor, the employment practices of Wal-Mart, and a host of other current controversies has led to a renewed discussion of minimum wages. The analysis of monopsony provides an opportunity to apply microeconomic theory to better understand these relevant policy matters. A. B. Krueger, Teaching the Minimum Wage in Econ 101 in Light of the New Economics of the Minimum Wage, <i>Journal of Economic Education</i>, 32, 243-258, 2001. D. Card and A. B. Krueger, "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania": Reply, <i>American Economic Review</i>, 90, 1397-1420, 2000. D. Neumark and W. Wascher, "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania": Comment, <i>American Economic Review</i>, 90, 1362-1396, 2000. P. Saunders and W. B. Walstad, <i>The Principles of Economics Course: A Handbook for Instructors</i>, McGraw-Hill, New York, 1990. R. M. Ayer and R. A. Collinge, <i>Microeconomics: Explore & Apply</i>, Pearson Prentice Hall, New Jersey, 2004. D. C. Colander, <i>Microeconomics</i> (6th Edition), McGraw-Hill Irwin Companies, New York, 2006. R. H. Frank and B. S. Bernanke, <i>Principles of Micro Economics</i> (3rd Edition), McGraw-Hill Irwin, New York, 2007. P. Krugman and R. Wells, <i>Microeconomics</i>, Worth Publishers, New York, 2006. M. A. Leeds, P. von Allmen, and R. C. Schiming, <i>Microeconomics</i>, Pearson Addison Wesley, Boston, Massachusetts, 2006. N. G. Mankiw, <i>Principles of Microeconomics</i> (4th Edition), Thompson Southwestern, Mason, Ohio, 2007. C. R. McConnell and S. L. Brue, <i>Microeconomics</i> (16th Edition), McGraw-Hill Companies, New York, 2005. A. O'Sullivan and S. M. Sheffrin, <i>Microeconomics: Principles and Tools</i> (4th Edition), Pearson Prentice Hall, New Jersey, 2005. M. Parkin, <i>Microeconomics</i> (5th Edition), Addison Wesley Longman, New York, 2001. B. R. Schiller, <i>The Microeconomy Today</i> (10th Edition), McGraw-Hill Irwin, New York, 2006. J. Robinson, <i>The Economics of Imperfect Competition</i>, Macmillan, New York, 1933.