Here’s Who Minimum Wage Hikes Hurt the MOST

This post was authored by We Are Capitalists

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A study by Employment Policies Institute analyzes how increases in the minimum wage affect low skilled male youth (ages 16 to 24) without high school diplomas across races. Their dataset uses over 600,000 points from 1994 to 2010.

From Drs. William Even and David MacPherson:

Among white males in this group, the authors find that each 10 percent increase in a federal or state minimum wage decreased employment by 2.5 percent; for Hispanic males, the figure is 1.2 percent. But among black males in this group, each 10 percent increase in the minimum wage decreased employment by 6.5 percent. The effect is similar for hours worked: each 10 percent increase reduced hours worked by 3 percent among white males, 1.7 percent for Hispanic males, and by 6.6 percent for black males.

About 34,300 black young adults lost their job due to the recession; during the same time period, 26,400 lost their job due to minimum wage increases that occurred.

The picture grows even more troubling when the authors focus just on the 21 states fully affected by the federal minimum wage increases in 2007, 2008, and 2009. Approximately 13,200 black young adults in these states lost their job as a direct result of the recession; 18,500 lost their job as a result of the federal wage mandate—nearly 40 percent more than the recession.

In other words, the consequences of the minimum wage for this subgroup were more harmful than the consequences of the recession.”

STUDY: https://www.epionline.org/wp-content/uploads/2014/08/even_5-2011.pdf

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