New study: minimum wage hikes hurt low-skill workers during last recession

Wintery Knight's avatarWINTERY KNIGHT

The American Enterprise Institute reports. (H/T Jay Richards tweet)

Higher unemployment:

A new NBER working paper from Jeffrey Clemens and Michael Wither of the University of California, San Diego, suggests that the 30% increase in the average effective minimum wage over the late 2000s “reduced the national employment-to-population ratio — the share of adults with any kind of job — by 0.7 percentage point” between December 2006 and December 2012.

That works out to 14% of the total working-age decline during that period. Clemens and Wither basically looked at what happened to workers in states that were affected by federal minimum wage hikes versus what happened in states that weren’t. They also adjusted for the differing state-level impact of the Great Recession.

Low-skill workers hurt the most:

Now what’s particularly interesting in what Clemens and Wither found is that the minimum wage hikes made it harder for low-income workers to climb…

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