"Economists have written scores of papers on the topic dating back 100 years, and the vast majority of these studies point to job losses for the least-skilled. They are based on fundamental economic reasoning—that when you raise the price of something, in this case labor, less of it will be demanded, or in this case hired.
Among the many studies supporting this conclusion is one completed earlier this year by Texas A&M’s Jonathan Meer and MIT’s Jeremy West, which reaffirmed that “the minimum wage reduces job growth over a period of several years” and that “industries that tend to have a higher concentration of low-wage jobs show more deleterious effects on job growth from higher minimum wages.”
The broader research confirms this. An extensive survey of decades of minimum-wage research, published by William Wascher of the Federal Reserve Board and me in a 2008 book titled “Minimum Wages,” generally found a 1% or 2% reduction for teenage or very low-skill employment for each 10% minimum-wage increase."
All this from econometrician and economist David Neumark in an essay in the WSJ
None the less President Obama says “there is no solid evidence that a higher minimum wage costs jobs.” His probably being wrong is not as important as his certainty and his eagerness to vilify people who do not agree with him. There is a lot of uncertainty in life and it should be recognized and taken seriously. But in this partisan world of ideologues, open-mindedness and honesty is a separate enemy. And Manichaeism allows for no compromise.
Among the many studies supporting this conclusion is one completed earlier this year by Texas A&M’s Jonathan Meer and MIT’s Jeremy West, which reaffirmed that “the minimum wage reduces job growth over a period of several years” and that “industries that tend to have a higher concentration of low-wage jobs show more deleterious effects on job growth from higher minimum wages.”
The broader research confirms this. An extensive survey of decades of minimum-wage research, published by William Wascher of the Federal Reserve Board and me in a 2008 book titled “Minimum Wages,” generally found a 1% or 2% reduction for teenage or very low-skill employment for each 10% minimum-wage increase."
All this from econometrician and economist David Neumark in an essay in the WSJ
None the less President Obama says “there is no solid evidence that a higher minimum wage costs jobs.” His probably being wrong is not as important as his certainty and his eagerness to vilify people who do not agree with him. There is a lot of uncertainty in life and it should be recognized and taken seriously. But in this partisan world of ideologues, open-mindedness and honesty is a separate enemy. And Manichaeism allows for no compromise.
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