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Question 164·Medium·Cross-Text Connections

Text 1 Classical labor economists argue that raising the minimum wage inevitably reduces employment among low-skill workers. According to this view, when employers are forced to pay higher hourly rates, they respond by hiring fewer workers or by cutting hours, producing an overall decline in job opportunities for the very people the policy is intended to help.

Text 2 Examining more than 100 city-level minimum-wage increases in the United States over the past decade, economists Elena Hernández and Paul Kramer found little evidence of the job losses predicted by classical theory. They propose that moderate wage hikes can prompt employers to invest in training and operational efficiencies, offsetting higher labor costs and allowing employment levels to remain stable.

Based on the texts, how would Hernández and Kramer (Text 2) most likely respond to the argument presented in Text 1?