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See other Business/Finance ArticlesTitle: Minimum Wage Hikes Will Lead to 1.8 Million Job Losses
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URL Source: http://freebeacon.com/issues/report ... l-lead-1-8-million-job-losses/
Published: Feb 5, 2017
Author: jj
Post Date: 2017-02-05 09:52:17 by HAPPY2BME-4UM
Keywords: None
Views: 706
Comments: 8
Minimum wage increases over the next several years will result in 1.8 million job losses, according to a report from the American Action Forum.
By July of this year, 22 states and the District of Columbia will have implemented minimum wage increases. In just 2017 alone, wage increases will lead to 383,000 job losses.
While the goal of increasing the minimum wage is to increase earnings for low-income individuals, the report finds that the additional earnings transferred from the job losers to the job keepers is minimal. For example, minimum wage hikes are projected to increase earnings by only $6,900, which would be split among all employees affected by the increase.
"While proposals to raise the minimum wage are well intended, it is important to consider the negative labor market consequences," the report states. "A 10 percent increase in the real minimum wage is associated with a 0.3 to 0.5 percentage-point decline in the net job growth rate."
"As a result, three years later employment becomes 0.7 percent lower than it would have been absent the minimum wage increase," the report states.
In just 2017, minimum wage increases will lead to 1,000 eliminated jobs in Vermont to 109,000 job losses in New York. If all future minimum wage increases are taken into account, those job losses increase to 3,000 in Vermont and 433,000 in New York.
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