Friday, June 19, 2015

More Research Showing Negative Effects Of The Minimum Wage

See Alberta wage hike will kill jobs by Jesse Kline of the National Post in Canada. Excerpt:
"However, a study published last year by the National Bureau of Economic Research looked at the effect of the increase in the federal minimum wage in the United States from $5.15 to $7.25 per hour between 2007 and 2009. It found that the increase “reduced the employment-to-population ratio of working age adults by 0.7 percentage points,” meaning that there were 1.4 million fewer jobs than there otherwise would have been. Another paper published in the Journal of Labor Research in December found that increasing the federal minimum wage in the U.S. from $7.25 to $10.10 an hour, as supported by President Barack Obama, would result in the loss of between 550,000 and 1.5-million jobs.

A comprehensive literature review of the effects of minimum wage increases around the world published in the journal Foundations and Trends in Microeconomics in 2007 concluded that, “the oft-stated assertion that recent research fails to support the conclusion that the minimum wage reduces employment of low-skilled workers is clearly incorrect.”"

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