Study Finds Minimum Wage Increases Do Not Negatively Affect Employment Rates
Furthermore, the study found that even the largest increases in minimum wage had a negligible effect on the amount of available jobs:
Most important paper on minimum wage effects since Card and @Alan_Krueger, according to @davidautor. Great work by @arindube, Cengiz, Lindner and Zipperer. Shows no employment effect: check that red line in the graph for cumulative employment effects. #ASSA2018 pic.twitter.com/N200rfvNGc— Ioana Marinescu (@mioana) January 6, 2018
When we restrict our sample to those with minimum wages with a substantial bite, we find additional evidence that the total employment of affected workers remains the same. Focusing on 46 events with the largest bite, we estimate that average wages of the affected earners increase significantly by 10.8 percent. We also find employment is little changed with a statistically insignificant increase of 0.2 percent.The study comes on the heels of two other research projects that also make the case for increasing the minimum wage. The first, from Amanda Y. Agan and Michael D. Makowsky, contends that a minimum wage increase would reduce the rate of re-incarceration among released prison inmates. The second, from UC Berkley, found that restaurants in Seattle, Oakland, San Francisco, San Jose, Washington, D.C., and Chicago (all cities that have raised the minimum wage) earned more money and saw no impact on employment.
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Money charts from Reich et al: Minimum wage increases drove earnings gains in restaurants, didn’t hurt employment. pic.twitter.com/74CSaZkN37— Ben Casselman (@bencasselman) January 5, 2018