In total, low-skilled workers had an estimated reduction of 3 million working hours, with 5,000 job losses.
While results of this study found marginal effects on employment losses, this outcome can be attributed to Seattle’s incremental increases as well as their minimum wage before their 2014 policy, since the city had the highest minimum wage in the nation.
As shown by the data, low-skilled workers are the ones who face the consequences of any reductions. If employers cut back hours or release employees, the higher-skilled workers will retain their positions while the lower-skilled are pushed out.
This economic phenomenon is well described by economist Thomas Sowell, who states, “making it illegal to pay less than a given amount does not make a worker’s productivity worth that amount — and if it is not, that worker is unlikely to be employed.”
www.dailywire.com
While results of this study found marginal effects on employment losses, this outcome can be attributed to Seattle’s incremental increases as well as their minimum wage before their 2014 policy, since the city had the highest minimum wage in the nation.
As shown by the data, low-skilled workers are the ones who face the consequences of any reductions. If employers cut back hours or release employees, the higher-skilled workers will retain their positions while the lower-skilled are pushed out.
This economic phenomenon is well described by economist Thomas Sowell, who states, “making it illegal to pay less than a given amount does not make a worker’s productivity worth that amount — and if it is not, that worker is unlikely to be employed.”
Why Minimum Wage Policies Do More Harm Than Good
The Biden Administration is currently pushing the idea of raising the Federal minimum wage from $7.25 to $15 an hour. While presented under the guise of helping lower income Americans, this aggressive policy proposal is actually an impetuous and injudicious solution that would harm the very...
