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Why a higher minimum wage might not help, or hurt, workers

Feb 6, 2018, 4:49 PM | Updated: Feb 7, 2018, 3:28 pm

Seattle affordability, minimum wage, Self-sufficiency...

Seattle approved a move to a $15 minimum wage in 2014. The benefits of that change are still in dispute. (AP)

(AP)

Last year, a study conducted by the University of Washington determined that Seattle鈥檚 $15 per hour minimum wage was actually hurting low-wage workers, not helping them. But now, new evidence may suggest otherwise.

RELATED: UW study actually says $15 is too high a wage

that recent studies have changed the minds of many economists by finding that minimum wage increases actually don鈥檛 do anything.

鈥淯ltimately they say it鈥檚 a wash,鈥 成人X站 Radio鈥檚 Tom Tangney said.

, co-written by Arindrajit Dube of the University of Massachusetts, looked at 137 different wage increases across the country since 1979.

While minimum wage increases do eliminate low-paying jobs, the paper states, they also add jobs that pay at or more than the new minimum. Thus, not a lot changes in terms of the number of available jobs.

Minimum wage outlier

Seattle might be a bit of an outlier when it comes to pay hikes, however. According to The Washington Post, wages in Seattle rose by an average of $3.53, or about 37 percent, in less than a year. The wages that Dube’s paper considered (more than 100) only increased by an average of 10 percent.

鈥淭hey鈥檙e looking at the fact that a lot of these states are increasing 15 cents,鈥 John Curley said. 鈥淐an the market absorb 15 cents? Yes. But can the market absorb a 30 percent increase? If it has no effect, let鈥檚 pay everybody $50 an hour.鈥

鈥淚t鈥檚 taking years to establish,鈥 Tangney retorted. 鈥淭hat鈥檚 why they say we鈥檙e not going to know about the impact of the Seattle thing for a few years.鈥

Listen to the full conversation on the Tom and Curley Show here.

 

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Why a higher minimum wage might not help, or hurt, workers