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 and Employment Outcomes (October 30th, 2014)
- Why the Minimum Wage Debate Isn’t Going to Go Away (February 21st, 2014)
- Are Higher Minimum Wages Un-Canadian? (January 16th, 2014)
- Raising Ontario’s Minimum Wage (October 20th, 2013)
- Boost the Minimum Wage, Boost the Economy (February 27th, 2013)