Seattle’s Minimum Wage Hike May Have Gone Too Far

[Krugminator2]

Seattle’s Minimum Wage Hike May Have Gone Too Far

https://fivethirtyeight.com/features/seattles-minimum-wage-hike-may-have-gone-too-far/?ex_cid=

As cities across the country pushed their minimum wages to untested heights in recent years, some economists began to ask: How high is too high?Seattle, with its highest-in-the-country minimum wage,[SUP]1[/SUP] may have hit that limit.

In January 2016, Seattle’s minimum wage jumped from $11 an hour to $13 for large employers, the second big increase in less than a year. New research released Monday by a team of economists at the University of Washington suggests the wage hike may have come at a significant cost: The increase led to steep declines in employment for low-wage workers, and a drop in hours for those who kept their jobs. Crucially, the negative impact of lost jobs and hours more than offset the benefits of higher wages — on average, low-wage workers earned $125 per month less because of the higher wage, a small but significant decline.

As cities across the country pushed their minimum wages to untested heights in recent years, some economists began to ask: How high is too high?
Seattle, with its highest-in-the-country minimum wage,[SUP]1[/SUP] may have hit that limit.

“Nobody in their right mind would say that raising the minimum wage to $25 an hour would have no effect on employment,” Autor said. “The question is where is the point where it becomes relevant. And apparently in Seattle, it’s around $13.”

$1500 wage cut for minimum wage workers in Seattle last year. Turns out basic economics is still a thing that matters.

 

[oyarde]

Good . Obviously those dirty little progressives were raking in too much .

 

[angelatc]

low-wage workers earned $125 per month less because of the higher wage, a small but significant decline.

$125 per month isn't really a small decline when discussing low end wages. If said worker was making $8 x 40 x 4 = $1280 a month. So almost 10%.

 

[oyarde]

$125 per month isn't really a small decline when discussing low end wages. If said worker was making $8 x 40 x 4 = $1280 a month. So almost 10%.

Actually it is a lot . That would be an electric bill , or phone & auto ins . Biggest raise I have ever seen a low end worker get would be 1 FRN an hour or 160 a month before tax . So - 125 is pretty bad .