Clawson: Minimum Wage Increases Create More Jobs that Pay More

Labor News

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Reprinted from The Daily Kos by Laura Clawson on February 10, 2018.

A study last year claimed that Seattle’s minimum wage had hurt low-income workers, a claim that went against both the vast majority of previous minimum wage studies and Seattle’s booming economy. But a new study, co-authored by UMass economics professor Arindrajit Dube and incorporating 137 minimum wage increases, finds—again—that raises don’t hurt jobs:

On average, minimum-wage increases eliminated jobs paying below the new minimum, but added jobs paying at or above the new minimum. The two changes effectively cancel each other out. […]

The decline in jobs paying less than the new minimum wage is offset by an increase in those paying more. Jobs further up the pay scale are largely unaffected, as economists would expect — the minor fluctuations beyond $4 above the new minimum wage are not statistically significant, the study found. …

Daily Kos 2/10

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