Oklahoma voters rejected State Question 832 this week by a 10-point margin, striking down a proposal that would have increased the state’s minimum wage to $15 an hour. The language also would have raised the minimum wage every year based on inflation.
The vote makes Oklahoma one of the latest in a string of places where voters have declined to embrace high minimum wage mandates. California and Massachusetts voters rejected similar proposals in recent years, fearing the negative implications of such drastic wage hikes.
The result comes as the majority of economists continue to warn about the unintended consequences of large minimum wage increases like SQ 832. According to a recent EPI survey, nearly three-quarters of economists oppose $15 wage mandates. Among those surveyed, 73% said these types of policies create greater barriers to entry for young workers, 71% said they encourage automation, 69% said they make it harder for small businesses to stay open, and 59% said they increase the cost of living.
EPI also released new research finding Oklahoma’s neighboring state Missouri has experienced negative impacts since voters passed a $15 minimum wage there. The state’s restaurant industry job growth stagnated under prior wage increases, and then suffered two years of consecutive job losses under the most recent hikes up to $15 per hour.
Under the proposed increase, EPI analysis estimates a $15 minimum wage would have cost Oklahoma more than 12,000 jobs. Additional research shows such a wage hike could also make the cost of living worse.
Those concerns appeared to resonate with Oklahoma voters.
“Oklahomans saw the writing on the wall,” said EPI research director Rebekah Paxton. “States experimenting with wage hikes like SQ 832 have seen local businesses close, taking jobs with them. That’s why a majority of economists oppose $15 wage mandates. They make it harder for businesses to operate, reduce job opportunities, and even force higher prices on consumers.”
As other states debate similar proposals, Oklahoma’s vote suggests policymakers should carefully consider the potential economic tradeoffs before pursuing large minimum wage increases.