Increasing minimum wage has many benefits; negatives are overstated by Hawley
State Assemblyman Steve Hawley, in a press release, stated that he is worried that raising the minimum wage will hurt small businesses and the working poor.
However, that is not what economic researchers have found in peer-reviewed research. Dube, Lester, and Reich, in a study “Minimum Wage Effect Across State Borders” looked at the effect of one state raising minimum wages while a bordering state did not raise its minimum wages – and found no adverse effect on employment.
In a study from March 30, 2006, the Fiscal Policy Institute found states with minimum wages above the federal level had faster small business and retail job growth. Furthermore, raising the minimum wage hasn’t resulted in higher unemployment. The unemployment rate is at a 30-year low.
Economists cite several reasons for these findings: increased minimum wage allows employees to buy more goods and services which improves the bottom line and increased wages reduces turnover which reduces employers’ costs.
I would encourage Mr. Hawley to reconsider his position in light of all the economic research showing the benefits of raising the minimum wage. Thank you.