Nonsequitur: Minimum Wage Hikes Led to Job Losses

December 21, 2015

Two studies have demonstrated a direct connection between minimum wage hikes and job losses.

An extensive review of research on minimum wage hikes by states, published by the Federal Reserve Bank of San Francisco, reports:

Thus, allowing for the possibility of larger job loss effects, based on other studies, and possible job losses among older low-skilled adults, a reasonable estimate based on the evidence is that current minimum wages have directly reduced the number of jobs nationally by about 100,000 to 200,000, relative to the period just before the Great Recession.

A study done last year by the CBO (Congressional Budget Office) estimated that a raise of the Federal minimum wage to $10.10/hr would result in the loss of 500,000 jobs.  An increase to $9/hr would result in a 100,000 decrease in jobs.

Of course, neither of these analyses considered the $15/hr minimum wage that some cities, some unions and some presidential candidates have advocated.  The impact on jobs at this level would be much more significant.

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