Minimum wage will result in job losses. Period.

Minimum wage will result in job losses. Period.

A new paper published by the National Bureau of Economic Research finds that of all the available research on the subject they reviewed, there is a “clear preponderance” of findings that show a job-killing impact. The documentation of job losses is even more pronounced for teenagers, young adults, and the less-educated.

“[The] body of evidence and its conclusions point strongly toward negative effects of minimum wages on employment of less-skilled workers, especially for the types of studies that would be expected to reveal these negative employment effects most clearly,” economists David Neumark and Peter Shirley write.

𝐓𝐡𝐞𝐫𝐞’𝐬 𝐍𝐨 𝐄𝐬𝐜𝐚𝐩𝐢𝐧𝐠 𝐭𝐡𝐞 𝐓𝐫𝐚𝐝𝐞-𝐎𝐟𝐟𝐬 𝐨𝐟 𝐭𝐡𝐞 𝐌𝐢𝐧𝐢𝐦𝐮𝐦 𝐖𝐚𝐠𝐞

When the government mandates a price for labor—aka a minimum wage—that exceeds the market rate, employers will inevitably purchase less labor. It’s just like consumers would purchase less soda if the government arbitrarily mandated higher prices for it than what it’s actually worth to people. In fact, that’s the exact point of “soda taxes” passed in the name of public health; they reduce soda consumption. The same thing happens with labor.

The lucky workers who end up being able to keep their jobs may benefit from the artificially high wage, but many others will not find work at all.

The job losses that come with minimum wage hikes are a fundamental economic reality. This latest research offers yet another reminder that, no matter how much wish-casting progressives engage in, there’s no escaping trade-offs in public policy.

https://fee.org/articles/new-research-debunks-claim-that-a-15-minimum-wage-would-not-reduce-employment