The role of beliefs in supporting economic policies: The case of the minimum wage

B-Tier
Journal: Journal of Economic Behavior and Organization
Year: 2021
Volume: 188
Issue: C
Pages: 1059-1087

Authors (2)

Mishagina, Natalia (not in RePEc) Montmarquette, Claude

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

Using a sizeable online experiment on a proposed policy to raise the minimum wage in Quebec, we show that support for the policy is consistent with participants’ self-interest and social preferences and, most importantly, with their beliefs about the policy's outcomes. This finding is significant because, unlike policy-invariant sociodemographic characteristics, beliefs can be modified. We then show that beliefs about the outcomes vary with participants’ knowledge about the minimum wage, numeracy, and economic literacy. We also show how participants without a good knowledge of facts about the minimum wage (its actual level, its relation with the average wage, and the proportion of workers earning the minimum wage), change their opinion after having been informed with the correct information.

Technical Details

RePEc Handle
repec:eee:jeborg:v:188:y:2021:i:c:p:1059-1087
Journal Field
Theory
Author Count
2
Added to Database
2026-01-26