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  • A Minimum Wage Indeed

    University of California, Irvine Professor of Economics David Neumark and Federal Reserve Board Division of Research and Statistics Associate Director William Wascher have a new book, Minimum Wages, examine nearly two decades of evidence on the effects of minimum wage laws and conclude:

    Based on their comprehensive reading of the evidence, Neumark and Wascher argue that minimum wages do not achieve the main goals set forth by their supporters. They reduce employment opportunities for less-skilled workers and tend to reduce their earnings; they are not an effective means of reducing poverty; and they appear to have adverse longer-term effects on wages and earnings, in part by reducing the acquisition of human capital. The authors argue that policymakers should instead look for other tools to raise the wages of low-skill workers and to provide poor families with an acceptable standard of living.

    We’ve heard some of these arguments before:

    Minimizing Economic Opportunity by Raising the Minimum Wage

    Raising the Minimum Wage Hurts Vulnerable Workers’ Job Prospects Without Reducing Poverty

    Minimum Wage Workers’ Incomes Rise When the Minimum Wage Does Not

    Minimum Wage Hikes Hurt Unskilled and Disadvantaged Workers’ Job Prospects

    Who Earns the Minimum Wage–Single Parents or Suburban Teenagers?

    Posted in Economics [slideshow_deploy]

    One Response to A Minimum Wage Indeed

    1. Barb -mn says:

      Minimum wage indicates there's a maximum. Minimum wage drives the human ambition to grow. By choice, a person apply's for a job to which they are notified of the pay. They can deny the job and apply somewhere else if the pay isn't what they expect. Starting out at minimum wage will gain experience of the operations of a company. If an employee wants to gain a higher position with a higher wage, personal drive will encourage the qualifications needed for the higher position. Minimum wage is the first rung of the ladder and where the employees do for themselves with their own decisions. People can do for themselves.

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