//Their results aren’t as rosy as some minimum wage proponents might have hoped, and they largely paint a picture of the minimum wage as an ineffective tool at increasing the earnings of workers. They found that the minimum wage had increased wages, as expected, but also that their “best estimates find that the Seattle Minimum Wage Ordinance appears to have lowered employment rates of low-wage workers.”
When the costs and benefits of the minimum wage were taken into account, the authors wrote that “the effects of disemployment appear to be roughly offsetting the gain in hourly wage rates, leaving the earnings for the average low-wage worker unchanged,” and that “Seattle’s low wage workers would have experienced almost equally positive trends if the minimum wage had not increased.”
Their final verdict was that: “The major conclusion one should draw from this analysis is that the Seattle Minimum Wage Ordinance worked as intended by raising the hourly wage rate of low-wage workers, yet the unintended, negative side effects on hours and employment muted the impact on labor earnings.”
Saturday, July 30, 2016
This is so unexpected.