Myths/raising the minimum wage hurts jobs - Revision history

Woozle: another article affirming lack of negative effect, mentioning positive ones

2015-10-27T00:21:53Z

another article affirming lack of negative effect, mentioning positive ones

Woozle: categories

2015-07-22T02:24:18Z

Woozle: Hanauer meme

2015-07-20T19:22:22Z

Hanauer meme

Woozle: tidied and significantly expanded

2015-07-09T20:38:45Z

tidied and significantly expanded

Woozle: more analysis; goals of employment

2015-03-07T20:20:45Z

more analysis; goals of employment

Woozle: post-move tidying

2015-03-07T20:05:43Z

post-move tidying

Woozle: Woozle moved page Minimum wage vs. jobs/raising to Myths/raising the minimum wage hurts jobs: I guess the "myths" page didn't exist yet...

2015-03-07T20:03:21Z

Woozle moved page Minimum wage vs. jobs/raising to Myths/raising the minimum wage hurts jobs: I guess the "myths" page didn't exist yet...

Woozle: some links

2014-11-10T02:27:18Z

some links

Woozle: Created page with "There is a common belief, widely promoted by right-wing groups, that raising the minimum wage will hurt employment. The most pessimistic credible study I could find comes fro..."

2014-10-25T22:15:36Z

Created page with "There is a common belief, widely promoted by right-wing groups, that raising the minimum wage will hurt employment. The most pessimistic credible study I could find comes fro..."

New page

There is a common belief, widely promoted by right-wing groups, that raising the minimum wage will hurt employment.

The most pessimistic credible study I could find comes from the Congressional Budget Office, which [[issuepedia:2014/02/The Effects of a Minimum-Wage Increase on Employment and Family Income|concluded in February 2014]] that increasing the minimum wage would have two primary effects on low-wage workers:
# most would receive higher pay, which would elevate some of them above the poverty level
# some jobs would probably be eliminated

It should be noted that the minimum wage, which (as of 2014) has not been raised or even adjusted for inflation since 2007, is not adequate to keep most workers out of poverty. They therefore rely either on government assistance or on working multiple jobs, which is unhealthy for the worker, increases strain on families, and decreases the {{l/ip|job supply}}.

In other words, a job that doesn't pay enough to live on isn't really worth having.

More significantly, it appears that the CBO model may be too pessimistic:
* San Jose [[issuepedia:2014/05/01/One Year Later, Here's What San Jose Looks Like After Raising the Minimum Wage|raised their minimum wage in 2013]], resulting in a ''decrease'' in unemployment and many other benefits to the local economy.
* The US Department of Labor [http://www.dol.gov/minwage/mythbuster.htm says] that "A review of 64 studies on minimum wage increases found no discernable effect on employment. Additionally, more than 600 economists, seven of them Nobel Prize winners in economics, have signed onto a letter in support of raising the minimum wage to $10.10 by 2016."
* A comparative study of states that raised their minimum wages to be higher than that of their neighbors found [http://www.eoionline.org/issues/minimum-wage/was-minimum-wage-helps-workers-doesnt-hurt-business/ no movement of jobs] from the former to the latter

In short, while there is plenty of debate on this subject, all the real evidence supports one side of it: raising the minimum wage doesn't have any clear effect on jobs except to make them more tolerable.

@@ Line 33: / Line 33: @@
 * A comparative study of states that raised their minimum wages to be higher than that of their neighbors found [http://www.eoionline.org/issues/minimum-wage/was-minimum-wage-helps-workers-doesnt-hurt-business/ no movement of jobs] from the former to the latter
 ==Summary==
-While there is plenty of debate on this subject, all the real evidence supports one side of it: '''raising the minimum wage doesn't have any clear effect on the employment rate.'''<ref name=wapo />
+While there is plenty of debate on this subject, all the real evidence supports one side of it: '''raising the minimum wage doesn't have any clear effect on the employment rate'''<ref name=wapo /> and in some cases may even increase employment<ref name=inc />.
 ==Related==
 There is a claim that the [[wikipedia:Difference_in_differences#Card_.26_Krueger_.281994.29_example|Card-Krueger study]] &ndash; which claimed to show an increase in employment after a minimum wage hike &ndash; was actually poorly conducted because it relied on employers' verbal statements rather than actually checking the employment records. "payroll records did not corroborate the verbal assertions made by employers."<ref name=elder /> Whether or not that is true, however, a follow-up study confirmed Card and Krueger's findings.<ref name=BJIR />
@@ Line 46: / Line 46: @@
 <ref name=BJIR>'''2009-06''' [http://www.ingentaconnect.com/content/bpl/bjir/2009/00000047/00000002/art00011 Publication Selection Bias in Minimum-Wage Research? A Meta-Regression Analysis] (paywalled) ''British Journal of Industrial Relations'', Volume 47, Number 2</ref>
 </references>

← Older revision		Revision as of 02:24, 22 July 2015
Line 1:		Line 1:
		+	[[category:minimum wage]]
		+	[[category:unemployment]]
	{{hdr/myth\|Raising the minimum wage will result in higher unemployment rates.}}		{{hdr/myth\|Raising the minimum wage will result in higher unemployment rates.}}
	[[File:Hanauer on minimum wage.jpeg\|thumb\|Billionaire Nick Hanauer was one of the original investors in Amazon.com.]]		[[File:Hanauer on minimum wage.jpeg\|thumb\|Billionaire Nick Hanauer was one of the original investors in Amazon.com.]]

@@ Line 1: / Line 1: @@
 {{hdr/myth|Raising the minimum wage will result in higher unemployment rates.}}
 ==Myth==
-There is a widespread belief that raising the {{l/ip|minimum wage}} leads to loss of jobs and higher unemployment. A more extreme version holds that {{l/sub|eliminating}} minimum wage would lead to more employment.
+There is a widespread belief that raising the {{l/ip|minimum wage}} leads to loss of jobs and higher unemployment. (A more extreme version also holds that eliminating the minimum wage completely would lead to more employment.)
 ===Examples===
 * '''The {{l/sub|San Francisco}} claim''': San Francisco suffered job losses after citizens approved a ballot proposal to raise the city’s minimum wage to $15 an hour by 2018.

@@ Line 2: / Line 2: @@
 ==Myth==
 There is a widespread belief that raising the {{l/ip|minimum wage}} leads to loss of jobs and higher unemployment. A more extreme version holds that {{l/sub|eliminating}} minimum wage would lead to more employment.
 ==Reality==
 There are (at least) two parts to the reality of this myth:
@@ Line 23: / Line 26: @@
 More significantly, it appears that the CBO model may be too pessimistic:
 * San Jose [[issuepedia:2014/05/01/One Year Later, Here's What San Jose Looks Like After Raising the Minimum Wage|raised their minimum wage in 2013]], resulting in a ''decrease'' in unemployment and many other benefits to the local economy.
 * The US Department of Labor [http://www.dol.gov/minwage/mythbuster.htm says] that "A review of 64 studies on minimum wage increases found no discernable effect on employment. Additionally, more than 600 economists, seven of them Nobel Prize winners in economics, have signed onto a letter in support of raising the minimum wage to $10.10 by 2016."
 * A comparative study of states that raised their minimum wages to be higher than that of their neighbors found [http://www.eoionline.org/issues/minimum-wage/was-minimum-wage-helps-workers-doesnt-hurt-business/ no movement of jobs] from the former to the latter
 ==Summary==
-While there is plenty of debate on this subject, all the real evidence supports one side of it: '''raising the minimum wage doesn't have any clear effect on the employment rate.'''
+While there is plenty of debate on this subject, all the real evidence supports one side of it: '''raising the minimum wage doesn't have any clear effect on the employment rate.'''<ref name=wapo />
-==Links==
+==Related==
-===Evidence===
+There is a claim that the [[wikipedia:Difference_in_differences#Card_.26_Krueger_.281994.29_example|Card-Krueger study]] &ndash; which claimed to show an increase in employment after a minimum wage hike &ndash; was actually poorly conducted because it relied on employers' verbal statements rather than actually checking the employment records. "payroll records did not corroborate the verbal assertions made by employers."<ref name=elder /> Whether or not that is true, however, a follow-up study confirmed Card and Krueger's findings.<ref name=BJIR />
-* '''2014-03-15''' [http://www.ibtimes.com/minimum-wage-washington-after-16-years-state-highest-minimum-wage-maintains-lower-unemployment Minimum Wage In Washington: After 16 Years, State With Highest Minimum Wage Maintains Lower Unemployment Than National, Regional Averages.]
+==Footnotes==
-* '''2014-01-08''' [http://www.washingtonpost.com/blogs/govbeat/wp/2014/01/08/raising-minimum-wage-doesnt-seem-to-affect-employment-in-3-charts-and-2-mcdonalds-meals/ Raising minimum wage doesn’t affect employment, in 3 charts (and 2 McDonald’s meals)]
+<references>
-===Counterevidence===
-* '''2014-10-16''' [http://www.elderstatement.com/2014/10/if-minimum-wage-is-so-great-why-cite.html?spref=tw&m=1 If Minimum Wage Is So Great, Why Cite Bogus Study?] claims that the PA/NJ study was refuted by a follow-up study, but does not cite any sources. Also makes a lot of other bogus arguments.
+<ref name=ibtimes>'''2014-03-15''' [http://www.ibtimes.com/minimum-wage-washington-after-16-years-state-highest-minimum-wage-maintains-lower-unemployment Minimum Wage In Washington: After 16 Years, State With Highest Minimum Wage Maintains Lower Unemployment Than National, Regional Averages.]</ref>

@@ Line 1: / Line 1: @@
 {{hdr/myth|Raising the minimum wage will result in higher unemployment rates.}}
 ==Reality==
 The most pessimistic credible study I could find comes from the Congressional Budget Office, which [[issuepedia:2014/02/The Effects of a Minimum-Wage Increase on Employment and Family Income|concluded in February 2014]] that increasing the minimum wage would have two primary effects on low-wage workers:
 # most would receive higher pay, which would elevate some of them above the poverty level
@@ Line 14: / Line 26: @@
 * A comparative study of states that raised their minimum wages to be higher than that of their neighbors found [http://www.eoionline.org/issues/minimum-wage/was-minimum-wage-helps-workers-doesnt-hurt-business/ no movement of jobs] from the former to the latter
 ==Summary==
-While there is plenty of debate on this subject, all the real evidence supports one side of it: '''raising the minimum wage doesn't have any clear effect on jobs except to make them more tolerable.'''
+While there is plenty of debate on this subject, all the real evidence supports one side of it: '''raising the minimum wage doesn't have any clear effect on the employment rate.'''
 ==Links==
 ===Evidence===

← Older revision	Revision as of 20:03, 7 March 2015
(No difference)

← Older revision		Revision as of 02:27, 10 November 2014
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	In short, while there is plenty of debate on this subject, all the real evidence supports one side of it: raising the minimum wage doesn't have any clear effect on jobs except to make them more tolerable.		In short, while there is plenty of debate on this subject, all the real evidence supports one side of it: raising the minimum wage doesn't have any clear effect on jobs except to make them more tolerable.
		+	==Links==
		+	===Evidence===
		+	* '''2014-03-15''' [http://www.ibtimes.com/minimum-wage-washington-after-16-years-state-highest-minimum-wage-maintains-lower-unemployment Minimum Wage In Washington: After 16 Years, State With Highest Minimum Wage Maintains Lower Unemployment Than National, Regional Averages.]
		+	* '''2014-01-08''' [http://www.washingtonpost.com/blogs/govbeat/wp/2014/01/08/raising-minimum-wage-doesnt-seem-to-affect-employment-in-3-charts-and-2-mcdonalds-meals/ Raising minimum wage doesn’t affect employment, in 3 charts (and 2 McDonald’s meals)]
		+	===Counterevidence===
		+	* '''2014-10-16''' [http://www.elderstatement.com/2014/10/if-minimum-wage-is-so-great-why-cite.html?spref=tw&m=1 If Minimum Wage Is So Great, Why Cite Bogus Study?] claims that the PA/NJ study was refuted by a follow-up study, but does not cite any sources. Also makes a lot of other bogus arguments.