![]() ![]() Two other important conclusions emerge from our review. In addition, among the papers we view as providing the most credible evidence, almost all point to negative employment effects, both for the United States as well as for many other countries. ![]() A sizable majority of the studies surveyed in this monograph give a relatively consistent (although not always statistically significant) indication of negative employment effects of minimum wages. However, the oft-stated assertion that recent research fails to support the traditional view that the minimum wage reduces the employment of low-wage workers is clearly incorrect. Our review indicates that there is a wide range of existing estimates and, accordingly, a lack of consensus about the overall effects on low-wage employment of an increase in the minimum wage. We review the burgeoning literature on the employment effects of minimum wages - in the United States and other countries - that was spurred by the new minimum wage research beginning in the early 1990s. Insufficient social support provides a strong incentive to accept even a non-living wage automation and offshoring has tilted the labour supply-demand balance greatly in favour of the employer and aside from economics, there are enormous social pressures toward work. In practice, I probably do lean in favour of regulation. Taking a naive view I disagree market forces should ensure that wages rise to the point where enough employees are willing to accept the job, and that will naturally fall above the minimum living standard. The debate over whether companies should be obliged to provide a living wage is interesting. A sudden large increase to minimum wage would likely cause more harm than good in the short term, and in the long term both methods will result in the same increase. With that said, I certainly think that it needs to be a gradual increase over time I think that something like a 200% inflation index until it reaches the inflation-adjusted target would be appropriate. Other countries provide clear examples of high minimum wages without destroying the economy. ![]()
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