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It's shocking that nobody mentions minimum wage increases as at least part of the cause here. When in some places the starting wage can't be lower than $10/hr,
by bpodgursky 13y ago
It's shocking that nobody mentions minimum wage increases as at least part of the cause here. When in some places the starting wage can't be lower than $10/hr, of course it's going to be challenging for college or high school students to get an employer to take a risk on them.
- 6d0debc071 13y agoMinimum wage, even at $10, is low enough that most of us could eat the loss of a couple of months of it out of our own wages easily enough. I find it hard to entertain the idea that it composes a significant portion of the risk for a company with reasonable money coming in. The things they can screw up in terms of projects and resources if not managed correctly, it seems to me, represent far greater risks. Someone seriously messes up there, you can stand to lose a lot more than a few thousand pounds.
- pjmorris 13y agoBarry Ritholtz, a Wall Street asset manager, posted links to a set of research papers on minimum wage recently [1]. The first paper in the bunch (co-authored by Alan Kreuger who is mentioned in the Economist article) compared employment in fast food restaurants between western New Jersey and eastern Pennsylvania after NJ raised its minimum wage. Employment grew slightly faster in New Jersey. This appears to contradict the notion that increasing minimum wage reduces employment. Can you point to empirical research that supports your position? [1] http://www.ritholtz.com/blog/2014/02/minimum-wage-research-papers/ http://www.ritholtz.com/blog/2014/02/minimum-wage-research-p... EDIT: Mis-stated paper finding, fixed.