Monday, March 31, 2014

Study: States that Raise the Wage See Decreased Jobs, High Teen Unemployment | Fox Business

Study: States that Raise the Wage See Decreased Jobs, High Teen Unemployment | Fox Business: The study looks at the 19 states that have minimum wages above the national rate of $7.25 an hour, as well as the 31 states in which the minimum wage is equal to the national average. The report finds that in 2013, a $1 increase in the minimum wage was associated with a 1.48 percentage point increase in the unemployment rate.

What’s more, this $1 hike also led to a 0.18 percentage point decrease in the net job growth rate, a 4.67 percentage point increase in the teen unemployment rate and a 4.01 percentage point decrease in the teenage net job growth rate. Overall, the AAF reports that high state minimum wages increased unemployment by 747,700 workers and reduced job growth by 83,300 jobs.

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