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Courage the Cowardly Dog Courage the Cowardly Dog is offline
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Old Jul 31st, 2006, 08:30 PM       
Quote:
Originally Posted by KevinTheOmnivore
Maybe you should go back and edit your post to say "effect," since what you said is "raising minimum wage raises unemployment."

How long does it "raise unemployment"? Does it raise unemployment as in closes industry, or does it "raise unemployment" for a year, and then merely adjust (ya know, when companies realize it's cheaper to just shut up and pay people rather than up and moving their whole operation)?

I mean, I can't promise pie charts, but I can find a study or two:

http://www.uvm.edu/~vlrs/doc/min_wage.htm

or,

http://www.epi.org/content.cfm/issue...e_minwagefacts

Quote:
There is no evidence of job loss from the last minimum wage increase.

A 1998 EPI study failed to find any systematic, significant job loss associated with the 1996-97 minimum wage increase. In fact, following the most recent increase in the minimum wage in 1996-97, the low-wage labor market performed better than it had in decades (e.g., lower unemployment rates, increased average hourly wages, increased family income, decreased poverty rates).
Studies of the 1990-91 federal minimum wage increase, as well as studies by David Card and Alan Krueger of several state minimum wage increases, also found no measurable negative impact on employment.
New economic models that look specifically at low-wage labor markets help explain why there is little evidence of job loss associated with minimum wage increases. These models recognize that employers may be able to absorb some of the costs of a wage increase through higher productivity, lower recruiting and training costs, decreased absenteeism, and increased worker morale.
A recent Fiscal Policy Institute (FPI) study of state minimum wages found no evidence of negative employment effects on small businesses.
interesting. I guess some people won't work unless they are paid what they believe they are worth. Very intrigueing.
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