Response on Riots in France-BECKER Although there is some dispute for the US about the magnitude of the effects of the minimum wage on the unemployment of low skilled persons, the French results on the effects of its minimum wage are far clearer. The clearer results for France (see the work of Bernard Salanie) are probably because the French minimum has been much higher relative to its average wage than has been the American minimum. Note that higher minimums might raise family income inequality not only because it reduces employment, but also because many of those benefiting from higher wages are teenagers and others in fairly well off families. For the most part (with one or two exceptions) I avoided attributing causes to the French riots. Instead, I stressed that the French labor market system in effect discriminates against Muslim and other immigrants. I suspect that the low wages, high unemployment, and poor education of African immigrants contributed to the riots there, but at this point we can hardly be confident about that conclusion. Let me add that unemployment rates in France and the US are determined in similar ways. It is not true that persons who have been unemployed for more than six months are no longer considered unemployed in American data. They are considered to be unemployed if they do not have jobs and are looking for work. I do believe there is often anti-competitive behavior by economic and other elites. It usually operates through discriminatory legislation. Many of the labor laws in Europe favor the elites-in this case, the insiders with good jobs- and hurts outsiders who are looking for decent pay and employment. I do not believe there is anything in Islamic law, and my wife who teaches Islamic history confirms this, that prevents good Muslims from giving allegiance to non-Islamic states. However, when Muslims are segregated into separate suburbs, as in most French cities, it presumably is easier to generate hostility to the ruling authorities, and even support for more radical forms of Islam. In the US, new immigrants do generally have jobs, even when they are unskilled. Moreover, immigrants can rise over time in the economic ladder more easily here than in Europe. This does not mean there will be no riots by any American immigrant groups, but I believe they are less likely.

Comments

[Jeremy Scott]

Let me very be frank with you. There are over thousands of bloggers in Malaysia. Not all of them win our hearts and respects. Very few of them including you and RPK are my favourites. Like others I have my reason for liking you guys.You have your opinion. Most of your opinions or articles are mild, probably because that’s how you were trained during your days with MSMs, being very cautious.In RPK’s case it is different. He speaks the mind of his readers with information and evidence he obtains from the various sources who trust him more than themselves. He gives them his word that he would never reveal unless they want him to do so. His readers are the ordinary Malaysians who find life not easy and in some ways believe this government is responsible for it.We must understand. Being a person in his status, it was not necessary for one to risk his comfort and luxury in life. What is he going to benefit personally out this battles? One must not forget, he is talking against the government and its leaders who will not have second thoughts to “finish” your good life if you are a threat to them. Remember what had landed a powerful DPM at one time into and what he is going through.Unlike in some other countries, Malaysia is in full control by one party that is led by few powerful Malays. They have the money, power and most importantly positions. People who are privy to their secrets are often afraid to reveal the truths for fear of being victimized. While some are silenced while others come out, responding to the conscience and in doing so they need people like RPK to confide in. Therefore, RPK cannot turn betrayer who point finger at them just to save himself.I sincerely believe he is one of the few Malaysians who are prepared to bid his own life for the sake of country and the people of Malaysia. He is actually a hero.The only fear I have is, his Deep Throats try to fix or trap him with untruthful stories that could jeopardize his credibility.