Depressions

  • 05.05.16

    Raise Wages, Kills Jobs?

    Everyone has heard the argument that "if we raise the minimum wage, we will lose jobs" in some form or another. This report by the National Employment Law Project uses historical data to test whether that has been the case. It investigates the 22 times that the United States has raised the minimum wage by looking ...

    Everyone has heard the argument that "if we raise the minimum wage, we will lose jobs" in some form or another. This report by the National Employment Law Project uses historical data to test whether that has been the case.

    It investigates the 22 times that the United States has raised the minimum wage by looking at employment trends during the 12 months prior to the minimum wage increase and the 12 months after to the minimum wage increase. 

    The report finds that the "basic economic indicators show no correlation between federal minimum-wage increases and lower employment levels, even in the industries that are most impacted by higher minimum wages." In fact, it finds that for a majority of the instances (68%) overall employment increased after the minimum wage was increased. In addition, of the only eight times when employment decreased after minimum wage hikes, the United States was in a recession or in close proximity to one in every instance.