A lot of debate in the US on Obama’s excellent proposal to hike the minimum wage.
John Schmitt of CEPR has put out an excellent paper summarizing all of the research to show that the employment effects of reasonable increases are … Zero, zilch .. Due to various adjustment mechanisms including lower turnover, higher productivity and wage compression. He also a notes that minimum wages complement income supplements for the working poor by limiting subsidies to low wage employers.
Keep this for future reference.
- Minimum wages as economic stimulus? (June 30th, 2016)
- Who earns minimum wage? (May 25th, 2016)
- Balanced Budget Myopia Breaks Both Ways (August 31st, 2015)
- Workers Link $15 Minimum Wage to Decent Work (April 14th, 2015)
- â€˜Tis the Season to Rethink Our Charitable Giving (December 18th, 2014)