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of the minimum wage 84 they argued that the negative employment effects of minimum wage laws are minimal if not non existent for example they look at the 1992 increase in new jersey s minimum wage the 1988 rise in california s minimum wage and the 1990 91 increases in the federal minimum wage in addition to their own findings they reanalyzed earlier studies using updated data generally finding that the earlier negative employment effects did not hold up in the larger datasets 85 this had major implications on policy challenging long held economic views that increasing minimum wage led to deadweight loss research after card s and krueger s work edit a 2010 study published in the review of economics and statistics compared 288 pairs of contiguous u s counties with minimum wage differentials from 1990 to 2006 and found no adverse employment effects from a minimum wage increase contiguous counties with different minimum wages are in purple all other counties are in white 86 in 1996 david neumark and william wascher reexamined card and krueger s results using payroll records from large fast food chains and reported that minimum wage increases led to decreases in employment their initial findings did not contradict card and krueger but a later version showed a four percent decrease in employment with statistically significant disemployment effects in some cases 87 card and krueger rebutted these conclusions in a 2000 paper 88 a 2011 paper reconciled differences between datasets showing positive employment effects for small restaurants but negative effects for large fast food chains 89 a 2014 analysis found that minimum wage reduces employment among teenagers 90 a 2010 study using card and krueger s methodology supported their original findings showing no negative effects on low wage employment 91 a 2011 study by baskaya and rubinstein found that federal minimum wage increases negatively impacted employment particularly among teenagers 92 other studies including a 2012 study by sabia hansen and burkhauser found substantial adverse effects on low skilled employment particularly among young workers 93 a 2019 paper in the quarterly journal of economics argued that job losses in studies like those by meer and west who found that a minimum wage significantly reduces rates of job growth are driven by unrealistic assumptions and that the effects of the minimum wage are more complex 94 another 2013 study by fang and lin found significant adverse effects on employment in china particularly among women young adults and low skilled workers 95 a 2017 study in seattle found that raising the minimum wage to 13 per hour reduced the incomes of low wage workers because they worked fewer hours as businesses adjusted to higher labor costs 96 a 2019 study in arizona suggested that smaller minimum wage increases might lead to slight economic growth without significantly distorting labor markets 97 in 2019 economists from georgia tech found that minimum wage increases could harm small businesses by increasing bankruptcy rates and reducing hiring with significant impacts on minority owned businesses 98 the congressional budget office s 2019 report on a proposed 15 federal minimum wage predicted modest improvements in take home pay for those who retained employment but warned of potential job losses reduced hours and increased costs of goods and services 99 similarly a 2019 study found that increasing the minimum wage could lead to increased crime among young adults 100 studies from denmark and spain further highlighted that significant increases in the minimum wage could lead to substantial job losses particularly among young workers 101 102 a 2021 study on germany s minimum wage found that while wages increased without reducing employment there were significant structural shifts in the economy including reduced competition and increased commuting times for workers 103 a 2010 study on the uk minimum wage found that it did not cause immediate price increases but led to faster price rises in sectors with many low wage workers over the long term 104 a 2012 uk study 1997 2007 found the minimum wage reduced wage inequality and had neutral to positive effects on employment 105 another 2012 uk study found no spill over effects from the minimum wage on higher earning brackets 106 a 2016 us study associated the minimum wage with reduced wage inequality and possible spill over effects though these might be due to measurement error 107 meta analyses edit a 2013 meta analysis of 16 uk studies found no significant employment effects from the minimum wage 108 a 2007 meta analysis by neumark found a consistent though not always significant negative effect on employment 109 a 2019 meta analysis of developed countries reported minimal employment effects and significant earnings increases for low paid workers 110 in 1995 card and krueger noted evidence of publication bias in time series studies of minimum wages favoring studies showing negative employment effects 111 a 2005 study by t d stanley confirmed this bias and suggested no clear link between the minimum wage and unemployment 112 a 2008 meta analysis by doucouliagos and stanley supported card and krueger s findings showing little to no negative association between minimum wages and employment after correcting for publication bias 113 debate over consequences edit protesters in new york city call for an increased minimum wage as part of the fight for 15 movement to require a us 15 per hour minimum wage 2015 minimum wage laws affect workers in most low paid fields of employment 27 and have usually been judged against the criterion of reducing poverty 114 minimum wage laws receive less support from economists than from the general public despite decades of experience and economic research debates about the costs and benefits of minimum wages continue today 27 various groups have great ideological political financial and emotional investments in issues surrounding minimum wage laws for example agencies that administer the laws have a vested interest in showing that their laws do not create unemployment as do labor unions whose members finances are protected by minimum wage laws on the other side of the issue low wage employers such as restaurants finance the employment policies institute which has released numerous studies opposing the minimum wage 115 116 the presence of these powerful groups and factors means that the debate on the issue is not always based on dispassionate analysis additionally it is extraordinarily difficult to separate the effects of the minimum wage from other variables that affect employment 42 studies have found that minimum wages have the following positive effects improves the functioning of the low wage labor market which may be characterized by employer side market power monopsony 117 118 raises family incomes at the bottom of the income distribution and lowers poverty 119 120 positive impact on small business owners and industry 121 encourages education 122 resulting in better paying jobs increases incentives to take jobs as opposed to other methods of transferring income to the poor that are not tied to employment such as food subsidies for the poor or welfare payments for the unemployed 123 increased job growth and creation 124 125 encourages efficiency and automation of industry 126 removes low paying jobs forcing workers to train for and move to higher paying jobs 127 128 increases technological development costly technology that increases business efficiency is more appealing as the price of labor increases 129 encourages people to join the workforce rather than pursuing money through illegal means e g selling illegal drugs 130 studies have found the following negative effects minimum wage alone is not effective at alleviating poverty and in fact produces a net increase in poverty due to disemployment effects 131 as a labor market analogue of political economic protectionism it excludes low cost competitors from labor markets and hampers firms in reducing wage costs during trade downturns this generates various industrial economic inefficiencies 132 reduces the quantity demanded of workers either through a reduction in the number of hours worked by individuals or through a reduction in the number of jobs 133 134 wage price spiral encourages employers to replace low skilled workers with computers such as self checkout machines 135 increases property crime and misery in poor communities by decreasing legal markets of production and consumption in those communities 136 can result in the exclusion of certain groups ethnic gender etc from the labor force 137 is less effective than other methods e g the earned income tax credit at reducing poverty and is more damaging to businesses than those other methods 138 discourages further education among people with low incomes by enticing people to enter the job market 138 discriminates against through pricing out less qualified workers including newcomers to the labor market e g young workers by keeping them from accumulating work experience and qualifications hence potentially graduating to higher wages later 12 slows growth in the creation of low skilled jobs 139 results in jobs moving to other areas or countries which allow lower cost labor 140 results in higher long term unemployment 141 results in higher prices for consumers where products and services are produced by minimum wage workers 142 though non labor costs represent a greater proportion of costs to consumers in industries like fast food and discount retail 143 144 a widely circulated argument that the minimum wage was ineffective at reducing poverty was provided by george stigler in 1949 employment may fall more than in proportion to the wage increase thereby reducing overall earnings as uncovered sectors of the economy absorb workers released from the covered sectors the decrease in wages in the uncovered sectors may exceed the increase in wages in the covered ones the impact of the minimum wage on family income distribution may be negative unless the fewer but better jobs are allocated to members of needy families rather than to for example teenagers from families not in poverty forbidding employers to pay less than a legal minimum is equivalent to forbidding workers from selling their labor for less than the minimum wage the legal restriction that employers cannot pay less than a legislated wage is equivalent to the legal restriction that workers cannot work in the protected sector at all unless they can find employers willing to hire them at that wage 114 that may be seen as a legal violation of human right to work in its most basic interpretation as a right to engage in productive employment and not to be prevented from doing so in 2006 the international labour organization ilo argued that the minimum wage could not be directly linked to unemployment in countries that have suffered job losses 1 in april 2010 the organisation for economic co operation and development oecd released a report arguing that countries could alleviate teen unemployment by lowering the cost of employing low skilled youth through a sub minimum training wage 145 a study of u s states showed that businesses annual and average payrolls grow faster and employment grew at a faster rate in states with a minimum wage 146 the study showed a correlation but did not claim to prove causation although strongly opposed by both the business community and the conservative party when introduced in the uk in 1999 the conservatives reversed their opposition in 2000 147 accounts differ as to the effects of the minimum wage the centre for economic performance found no discernible impact on employment levels from the wage increases 148 while the low pay commission found that employers had reduced their rate of hiring and employee hours employed and found ways to cause current workers to be more productive especially service companies 149 the institute for the study of labor found prices in minimum wage sectors a rose faster than other sectors especially in the four years after its introduction 104 neither trade unions nor employer organizations contest the minimum wage although the latter had especially done so heavily until 1999 in 2014 supporters of minimum wage cited a study that found that job creation within the united states is faster in states that raised their minimum wages 124 150 151 in 2014 supporters of minimum wage cited news organizations who reported the state with the highest minimum wage garnered more job creation than the rest of the united states 124 152 153 154 155 156 157 in 2014 in seattle washington liberal and progressive business owners who had supported the city s new 15 minimum wage said they might hold off on expanding their businesses and thus creating new jobs due to the uncertain timeline for implementing the wage increase 158 however subsequently at least two of the business owners quoted did expand 159 160 concerning the economic effects of introducing minimum wage legislation in germany in january 2015 recent developments have shown that the feared increase in unemployment has not materialized however in some economic sectors and regions of the country there has been a decline in job opportunities particularly for temporary and part time workers and some low wage jobs have disappeared entirely 161 because of this overall positive development the deutsche bundesbank revised its opinion and ascertained that the impact of the introduction of the minimum wage on the total volume of work appears to be very limited in the present business cycle 162 a 2019 study published in the american journal of preventive medicine showed that in the united states those states that have implemented a higher minimum wage saw a decline in the growth of suicide rates the researchers say that for every one dollar increase the annual suicide growth rate fell by 1 9 the study covers all 50 states for the years 2006 to 2016 163 according to a 2020 us study the cost of a 10 minimum wage increase for grocery store workers was fully passed through to consumers as a 0 4 increase in grocery prices 164 similarly a 2021 study that covered 10 000 mcdonald s restaurants in the us found that between 2016 and 2020 the cost of 10 minimum wage increases for mcdonald s workers were passed through to customers as 1 4 increases in the price of a big mac 165 166 this results in minimum wage workers getting a lesser increase in their real wage than in their nominal wage because any goods and services they purchase made with minimum wage labor have now increased in cost analogous to an increase in the sales tax 167 according to a 2019 review of the academic literature by arindrajit dube overall the most up to date body of research from us uk and other developed countries points to a very muted effect of minimum wages on employment while significantly increasing the earnings of low paid workers 110 according to a 2021 study t...