New Summary of Minimum Wage Research Shows Negative Effects
A nationwide $15 minimum wage appears to be under discussion in Washington. While they are mulling it over, policymakers might want to check out a new paper published by the National Bureau of Economic Research.
Titled “Myth or Measurement: What Does the New Minimum Wage Research Say about Minimum Wages and Job Loss in the United States?” it surveys the existing research on the effects of the minimum wage.
What does it find? According to the authors:
Our key conclusions are: (i) there is a clear preponderance of negative estimates in the literature; (ii) this evidence is stronger for teens and young adults as well as the less-educated; (iii) the evidence from studies of directly-affected workers points even more strongly to negative employment effects; and (iv) the evidence from studies of low-wage industries is less one-sided.
Labor economics isn’t my field of expertise, but from an outsider’s perspective, raising the minimum wage doesn’t look good!