Unintended (But Predictable) Consequences of Minimum Wage Hikes

From Cato:

No doubt some of the law’s supporters were well-intentioned; they also predicted the law would help low-wage workers.

But intentions aside, compelling new research suggests Seattle’s minimum-wage law harmed poor workers significantly. A University of Washington study released Monday indicates that the move from an $11-per-hour minimum wage to a $13-per-hour minimum wage in Seattle was associated with a more-than-9% cut in low-wage workers’ hours.

This is a loss of 3.5 million hours worked per quarter, and translates into a $125 average decline in low-wage employees’ earnings per month. Other estimates in the paper suggest that the minimum wage is associated with 5,000 jobs lost in Seattle.

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