The Big Think

February 9, 2016

But Let’s Not Look at the Evidence

Filed under: Politics — jasony @ 11:29 am

Evidence Mounts: Minimum Wage Hikes Cost Jobs:

“The evidence continues to mount that minimum wage hikes have economic costs: A Federal Reserve Bank of San Francisco review paper recently found that minimum wages had ‘directly reduced the number of jobs nationally by about 100,000 to 200,000.’ And now a new survey of recent data by Jed Graham of Investor’s Business Daily (h/t RCP) found that minimum wage hikes seem to have taken a toll on hiring in some of America’s major metropolitan areas:

Hiring at restaurants, hotels and other leisure and hospitality sector venues slowed markedly last year in metro areas that saw big minimum-wage hikes, new Labor Department data show [. . .]

The big shortcoming in the available data for 5 of the 6 cities is that they cover broad metro areas, far beyond the city limits where wage hikes took effect. Still, the uniform result of much slower job growth in the low-wage leisure and hospitality sector, even as the pace of job gains held steady in surrounding areas, sends a pretty powerful signal.

It’s important to remember that most of these hikes are much more modest than the $15 dollar minimum that is now officially part of the Democratic Party platform. A hike of that level is unprecedented in American history, so the real impact on job creation is anyone’s guess.”

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