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We argue that noise distracts people but that the degree of distraction induced by various noise levels will affect creativity differently. A high level of noise may cause a great deal of distraction, causing individuals to process information to a lesser extent and therefore to exhibit lower creativity. A moderate (vs. low) level of noise, however, is expected to distract people without significantly affecting the extent of processing. Further, we reason that such a moderate distraction, which induces processing difficulty, enhances creativity by prompting abstract thinking. We predict, in sum, that a moderate level of noise will enhance creativity relative to both high and low levels of noise.
Thus, allowing for the possibility of larger job loss effects, based on other studies, and possible job losses among older low-skilled adults, a reasonable estimate based on the evidence is that current minimum wages have directly reduced the number of jobs nationally by about 100,000 to 200,000, relative to the period just before the Great Recession. This is a small drop in aggregate employment that should be weighed against increased earnings for still-employed workers because of higher minimum wages. Moreover, weighing employment losses against wage gains raises the broader question of how the minimum wage affects income inequality and poverty. This issue will be addressed in the next Economic Letter .