Minimum Wage Claim is Bogus

Posted on January 21, 2013

A recent Los Angeles Times article published in the Post-Gazette cites a claim by the Center for Economic and Policy Research that there is “little indication from economic research” that minimum wage hikes result in employment loss, (“Push for Minimum Wage Increase Intensifies,” Jan. 8). This is a bogus claim that relies on a handful of studies cherry-picked to fit their point of view.

The academic consensus overwhelmingly rejects that claim. In fact, a new report by researchers at the University of California-Irvine finds that even these outlying studies that the Center for Economic and Policy Research cites are fatally flawed, and that their conclusions are without merit.

Wage hike proponents are entitled to their opinion, but the facts remain the same: 85 percent of the most credible economic research from the last two decades point to a loss of job opportunities following a wage hike.

 

MICHAEL SALTSMAN
Research Director
Employment Policies Institute