We have a new report today: The Long-Lasting, Negative Consequences of the Minimum Wage. Briefly:
- High labor costs hurt a state’s economic competitiveness.
- In Washington, these costs include the nation’s highest minimum wage.
- Unlike the federal minimum wage, Washington’s is indexed to inflation and has no tip credit.
- HB 1355 would increase Washington’s minimum wage to $12 in 2019.
- 3.03 percent of Washington’s FTE jobs were at the minimum wage in 2012.
- Nationally, workers under 25 are about half of those paid the federal minimum wage.
- Minimum wage increases have long-lasting, negative effects on workers.
- Minimum wages reduce employment for those with fewer skills.
- For each 10 percent increase in the minimum wage, about one-sixth fewer jobs are created.
- Higher minimum wages reduce the earnings of the lowest-skilled.
- Minimum wages do not reduce poverty.
- Minimum wages limit human capital acquisition.
- Minimum wages reduce consumer, employee, and employer choices.
We also talked about the minimum wage on the podcast — see here for the episode.