Minimum Wage: Demand Curves Really Do Slope Down
Via Carpe Diem, from William Even and David Macpherson:
"Each 10% increase in the minimum wage [since 2007] was accompanied by a decrease in employment of 1.2% for Hispanic males, 2.5% for white males and 6.5% for black males. When looking at hours worked, we saw a similar effect: Each 10% increase in the minimum wage reduced hours worked by 1.7% for Hispanic males, 3% for white males and 6.6% for black males.
The data clearly show a disproportionate loss of hours and employment for black young adults. Let's put these lost opportunities into context. Between 2007 and 2010, employment for 16- to 24-year-old black males fell by approximately 34,300 as a result of the recession; over the same time period, approximately 26,400 lost their jobs as a result of increases in the minimum wage across the 50 states and at the federal level.
tomw:
Who knew?
Stupidity is STILL not illegal, just further along in its spread nationwide from its inception point in Washington, D.C.
Maybe they'll make it up in volume?
July 20, 2011, 10:01 amtom
caseyboy:
Yes, but don't forget that many union contracts peg wage increases to increases in the minimum wage. And don't forget it makes politicians "feel good" that they are helping the workers on the lowest rung (out the door).
July 20, 2011, 1:50 pm