Quote:
Originally Posted by Resurrection
The myth of the minimum wage being a job killing policy is perpetuated by business'
|
Not really. It's mentioned in several university studies which I would assume are not in business. But I think the confusion is still that you can't properly estimate the effect of the over all economy when looking at the minimum wage mandate. Seattle was and is booming and the results have not been as intended. How will such a dramatic raise in minimum wages work when the economy sucks?
Anyway, the UW study very basically concludes this...
Quote:
|
The major conclusion one should draw from this analysis is that the Seattle minimum Wage Ordinance worked as intended by raising the hourly wage rate of low-wage workers,yet the unintended, negative side effects on hours and employment muted the impact on labor earnings.
|
The Harvard study concludes the same via San Fransisco but no study or opinion should be considered the final word yet. It is however naive to suggest there is no downside to mandating an artificially high labour market. There is likely a perfect balance that goes along the lines of smaller, more regular increases to the existing level. The "fight for a living wage" thing is pretty much an ideology in my opinion and not even close to a sound economic practice.