Dec 25th, 2006 by ravi
Minimum wage bogeyman

EPI has released a study that sheds some light on the right’s “worry” that minimum wage hikes would have an overall negative impact due to reduced hiring and so on. EPI looked at the data for the states that raised the minimum wage on their own, given the federal government’s reluctance to do so, and here is what they found (summarised here, follow link for the detailed analysis):

State minimum wages: A policy that works

Have these state actions had any effect? Are wages higher than they would have otherwise been, i.e., are these higher minimums reaching their intended beneficiaries? Is employment worse than it would have otherwise been? The evidence presented here suggests that the answers are, respectively, yes, yes, and no.

[ Link ]

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