https://fivethirtyeight.com/features...o-far/?ex_cid=
$1500 wage cut for minimum wage workers in Seattle last year. Turns out basic economics is still a thing that matters.As cities across the country pushed their minimum wages to untested heights in recent years, some economists began to ask: How high is too high?Seattle, with its highest-in-the-country minimum wage,1 may have hit that limit.
In January 2016, Seattle’s minimum wage jumped from $11 an hour to $13 for large employers, the second big increase in less than a year. New research released Monday by a team of economists at the University of Washington suggests the wage hike may have come at a significant cost: The increase led to steep declines in employment for low-wage workers, and a drop in hours for those who kept their jobs. Crucially, the negative impact of lost jobs and hours more than offset the benefits of higher wages — on average, low-wage workers earned $125 per month less because of the higher wage, a small but significant decline.
As cities across the country pushed their minimum wages to untested heights in recent years, some economists began to ask: How high is too high?
Seattle, with its highest-in-the-country minimum wage,1 may have hit that limit.
“Nobody in their right mind would say that raising the minimum wage to $25 an hour would have no effect on employment,” Autor said. “The question is where is the point where it becomes relevant. And apparently in Seattle, it’s around $13.”
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