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Minimum Wage Increases PROMOTE Jobs

post #1 of 2
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Quote:
Even though some economists have argued that paying workers more tends to discourage hiring, wage increases actually leave employment unaffected or even improved, argues the study, authored by Arindrajit Dube of the University of Massachusetts Amherst, T. William Lester of UNC Chapel Hill and Michael Reich of UC Berkeley. "We actually found absolutely no evidence of any kind of disemployment effect -- in other words, jobs being killed -- when the minimum wage went up," Dube said on the Real News Network. "The answers were somewhat surprising."
http://www.huffingtonpost.com/2010/1..._n_776831.html

The original study:
https://udrive.oit.umass.edu/folbre/...ube_proof2.pdf
(note--- this only covered 1990-2006)
post #2 of 2
Very interesting. It does seem counterintuitive, but I have seen this in action in the city of Santa Barbara, where I live.
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