The Minimum Wage Kills Twelve More Jobs

I invite all those who claim increasing the minimum wage has no impact to visit Life Challenge of Michigan and tell them what you think. The organization is faith-based, so you will probably be treated cordially. But at least have the courage of your convictions. Tell these folks that you’re glad the higher minimum wage put one of their programs out of business. Continue Reading →

Who Really Gets the Minimum Wage

Every reputable economist who has studied the minimum wage has concluded it is a bad way to fight poverty. Far better is the earned income tax credit. However, that program will also not affect people living in households where no one works. Perhaps restoring the Clinton-era “welfare to work” programs would be helpful. Continue Reading →

The Minimum Wage Yet Again

David Neumark, J.M. Ian Salas, and William Wascher (NSW) used the same data that both ADR and DLR used. Their paper “Revisiting the Minimum Wage − Employment Debate: Throwing Out the Baby With the Bathwater?” (January, 2013. National Bureau of Economic Research Working Paper 18681). In fact, the title is too kind. ADR and DLR have apparently thrown out the baby and kept (and published) the bathwater. Continue Reading →

More Data on the Minimum Wage

The damage from a minimum wage hike depends on the overall labor market. If the job market is buoyant, as it is in the fracking boomtown of Williston, N.D., fast-food workers may already make more than $9 an hour. But when the jobless rate is high, as it still is in California and New York, the increase punishes minority youth in particular.

That is what happened during the last series of wage hikes to $7.25 from $5.15 that started in July 2007 as the economy was headed toward recession. The last increase hit in July 2009 just after the recession ended, and as the nearby chart shows, the jobless rate jumped for teens and black teens especially. For black teens, the rate has remained close to 40% and was still 37.8% in January.

A study by economists William Even of Miami University and David Macpherson of Trinity University concludes that in the 21 states where the full 40% wage increase took effect, “the consequences of the minimum wage for black young adults without a diploma were actually worse than the consequences of the Great Recession.”
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