The Council of Economic Advisers: Selected Issues in Labor Economics

Abstract

The paper focuses on how various CEAs have dealt with two issues in labor economics: 1) How changes in marginal tax rates affect aggregate labor supply; and 2) Economic impact of a minimum wage. It presents a brief textbook discussion of each issue; it then describes the evolution of thinking, as represented in CEA reports, concerning each issue. It points out several differences between analysis of Democratic CEAs from that of Republican CEAs. Differences have generally concerned differing interpretations of empirical findings and not differences in underlying economic theory. (82, JO)