When New Jersey raised their minimum wage, the researchers tracked hiring and firing in both counties. The incentive makes it better for society than welfare or a universal basic income. Figure 2 Women are hit particularly hard by anomalies in pay in industries where tipped pay is prevalent such as the restaurant industry.
Varies by age and job status. Rather than have copious amounts of underpaid or poor citizens, minimum wage laws seek a level of economic equality. Employees receive whichever is higher, the federal or local minimum wage.
Businesses find other ways to offset higher labor costs. A more educated workforce increases innovation and the number of small businesses.
This clustering of minimum-wage policies within regions of the country is an obstacle for credible research on the minimum wage because comparing the employment of minimum-wage raising and nonraising states effectively compares regions such as the Northeast versus the South.
In particular, they do not include any amount for saving for retirement or buying a home, or even for emergencies.
Your Economics A minimum wage is a limit on how little you can legally pay someone to work. Some cities in California have higher minimum wages. Effects Minimum wage laws sometimes have unintended consequences.