President Biden claims that raising the federal minimum wage to $15 an hour will force employers to pay a living wage to workers, but the weight of economic studies say that it would have an adverse effect on employment.
Biden’s plan, which is making its way through Capitol Hill now as part of the covid relief package, would more than double minimum wage. It would also cost jobs, particularly for young workers and less-educated workers.
Many supporters of hiking the minimum claim, without evidence, that the economic studies have shown that a higher wage will not reduce employment or that the studies are split evenly on the question.
A new review of the economic literature published in academic journals over the past few decades indicates that this is wrong. In fact, there is a clear preponderance of negative effects on employment, the study finds.
David Neumark of the University of California,