Thursday, January 14, 2016

Majority of Labor Economists Believe Minimum Wage Hikes Cause Unemployment – Employment Policies Institute

From the article: 
Over 73 percent of AEA labor economists believe that a significant increase will lead to employment losses and 68 percent think these employment losses fall disproportionately on the least-skilled. Only 6 percent feel that minimum wage hikes are an efficient way to alleviate poverty. The survey also found:
Employers would turn to better skilled employees: More than two-thirds of labor economists (68 percent) believe a mandated wage increase will cause employers to hire applicants with greater skills.
The minimum wage is not an effective anti-poverty measure: 70 percent say that an expanded Earned Income Tax Credit (EITC) would best assist those in poverty. Nearly two-thirds (64 percent) believe that an expanded EITC would lead to employment gains. Meanwhile, just 9 percent say a higher minimum wage is the best anti-poverty measure and only 6 percent believe that a minimum wage increase would lead to employment gains.