Letter: Wage increases cost jobs
Doug Hall makes an interesting case for minimum wage (Monitor, May 3). However, Hall’s anecdote is an atypical minimum wage employee.
According to the Bureau of Labor Statistics, 55.8 percent of minimum wage workers are under the age of 25 and 31.1 percent are teenagers. This means that the majority of those who benefit from a minimum wage increase are not likely to be poor.
In fact, a recent study demonstrates that only 11.3 percent of workers who would benefit from a minimum wage hike are classified as “poor.”
Furthermore, there is the known disemployment effects of minimum wage.
Minimum wage increases cost jobs, either immediately or future hiring, as well as lead to other effects that can mute the benefits, such as higher prices, reduced hours and reduced nonmonetary compensation.
The increased costs to the business would have to come from somewhere. There are ways to help the poor earn more money, but making it harder for them to get jobs is not one of them.