Experiment 5: A Minimum Wage.  88-220, Fall 1998, 21 Sept 98.

Some important notes:

We only did Sessions 1 and 2, so ignore all questions 
pertaining to Session 3.

In tables L5.1, L5.2, L5.3, L5.4, and L5.5 and the associated questions (pp 151-154): 
All references to "Type A" and "Type B" workers on these pages should be changed 
to "$12 Reservation Wage" and "$5 Reservation Wage."  Thus, whenever you read
"Type A" replace it with "$12 Reservation Wage," and whenever you read "Type B"
replace it with "$5 Reservation Wage." 

Question 3 and Table L5.9 (p 159): 
The distribution of reservation wages is the same for all sessions. 
The labor supply asked for in this question and table is for a single session.

Question 3 and Table L5.10 (p 160): 
The value of workers to firms is identical in Sessions 1 and 2. 
The labor demand asked for in this question and table should 
be for each individual session, and not the total demand for 
both sessions combined. 

Figure L5.1, p 161: 
The x-axis may be too small depending on the number of students in 
the class.  Feel free to rescale it or go into the right margin. 

Question 2 (p 163): The question should read: "Complete Table L5.12 to compare 
the competitive equilibrium predictions about wage rates and number of 
laborers employed in each session with the observed values." 

Question 1 and Table H5.1 (p 171): 
Remove the words "competitive equilibrium" from the second line of the
question, and alter the title of Table H5.1 to "Employment and 
Labor Income--Theoretical Predictions."  Note that the "theoretical 
prediction" may differ from "competitive equilibrium" when the 
minimum wage is binding. 

Question 3, p. 171: 
Change the word "involuntary" to "voluntary" on the last line of the question. 



And here is the data:

Data for Table L1.5:
Distribution of Types of Employers and laborers
Participant		
Type		Sess 1	Sess 2
Employers	10	10
Type A ($12)	15	15
Type B ($5) 	15	15

Data for Table L5.2:
Unemployed Laborers and Their Reservation Wages
	 	Type A ($12)	Type B($5)
Session 1	10		2
Session 2	12		8

Data for Table L5.3:
No Minimum Wage:  Session 1--Last Round
Firm	Laborer 1	Laborer 2
ID	Wage	Type	Wage 	Type
1	13	12	8	5
2	13	5	8.25	5
3	16	12	9	5
4	12	5	10	5
5	17	12
6	15	12	9	5
7	16	5	8	5
8	16	5	8	5
9	12	12	
10	10	5	10	5

	

Data for Table L5.4:
Binding Minimum Wage:  Session 2--Last Round
Firm	Laborer 1	Laborer 2
ID	Wage	Type	Wage 	Type
1	16	5
2	15	5
3	15.5	5
4	17	5
5	16	12
6	15.25	5
7	16	12
8	15	12
9	15	5
10 	15	5	

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