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You don't need to speculate. There is a research that shows it does hurt lower skill workers : http://www.nber.org/papers/w12663.pdf http://www.nber.org/papers/
by simula67 8y ago
You don't need to speculate. There is a research that shows it does hurt lower skill workers : http://www.nber.org/papers/w12663.pdf http://www.nber.org/papers/w12663.pdf
- wlll 8y agoThat's an interesting read, in summary it seems that rises in the minimum wage have a small negative impact, mostly for low paid young people. That makes sense, there's going to be jobs that just aren't profitable when the wages go up. If I can make $4 on a box of shleem, and the kid who packs the shleem's wages go up $5 I have to pack the shleem myself, or stop selling it. One thing that the report mentioned, and is maybe a possible cause of this negative increase, was that kids will leave school sooner when the minimum wage is higher. Perhaps to counter the issue there could be some sort of means-tested grant system to help keep kids in school?