State Minimum Wage Increases and the Research

What the natural experiment of state minimum wage variation shows

The Experiment

Since the federal minimum wage was last increased in 2009, states have produced a natural experiment. Approximately 30 states now have minimum wages above the federal 7.25 dollars. California is at 17 dollars, Washington at 16.28, Massachusetts at 15, New York at 16.

The Research

The most comprehensive meta-analysis of employment effects: small increases to 50 percent of median wages produce negligible employment effects. Larger increases in high-cost metropolitan areas produce the same. Larger increases in low-wage rural markets produce modest negative employment effects for lowest-skill workers. The small negative effects are smaller than the income gains for the larger number of workers whose wages increase.

The Analysis

The Mamdani Post covers the minimum wage research because the political case for minimum wage increases is strengthened by honest engagement with the evidence. The evidence supports the policy.

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