650 Economists May Support a Minimum Wage Hike, but Over 13,000 Believe it Will Destroy Jobs
Vast majority of economists agree, artificially raising the minimum wage puts people out of work
Publication Date: October 2006
Topics: Minimum Wage
Washington, DC—The Economic Policy Institute has managed to find 650 economists who support raising the minimum wage, but the Employment Policies Institute points to a survey conducted by the University of New Hampshire revealing that 77% (13,860) of labor economists with the American Economics Association believe minimum wage hikes have a negative effect on employment.
Job loss experienced by low-skilled adults, in particular, is substantial following a minimum wage hike. Research from Cornell and the University of Connecticut found that a 10% increase in the minimum wage results in an 8.5% increase in unemployment among adults lacking a high school diploma. Research from economists at Duke, Boston University, and Michigan State University all confirm that low-skilled adults suffer considerable job loss following minimum wage hikes.
“Proponents of minimum wage hikes contend that the attendant job loss is minimal and worth it, but they’re ignoring the fact that it is almost exclusively low-skilled adults who lose their job,” said Mike Flynn, Director of Legislative Affairs at the Employment Policies Institute. “Minimum wage hikes end up hurting the very people they are intended to help by jeopardizing the jobs of those most in need of assistance.”
For more information on the unintended consequences of mandated wage hikes and the benefits of the Earned Income Tax Credit go to www.EPIonline.org