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Do minimum wage hikes cause job loss?

• Jan 10, 2017 at 5:00 PM

Bob Rossana, a professor of economics at Wayne State University, says there is evidence that shows that raising the minimum wage leads to a rise in unemployment.

“With the new year, minimum wages are rising in many cities and states, including Michigan where I live,” Rossana wrote last week. “I have written before on this subject ... but I ran across a nice article containing a very readable summary of the evidence on this subject. It is a nice read for non-economists because it has no equations (gasp!) and it is not very long, but it does provide an accessible summary statement of the empirical scientific evidence on the effects of the minimum wage.”

Rossana says a survey by Neumark and Wascher (in 2007) concluded that nearly two-thirds of the more than 100 newer minimum wage studies found consistent evidence of job loss effects on low-skilled workers.

"Some workers gain and some lose, and the tragedy of the policy is that it harms those in our society who are the least-able to deal with a job loss and the loss of skill-accumulation that goes along with working,” Rossana offers. “Namely, the policy harms people at the low end of the income distribution.”

Read the complete post: “Minimum Wages: A Survey of the Evidence.”

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