Social Sciences
4 years ago

Minimum wage increases hurt low-wage workers, benefitting unions at their expense.

SSRN Electronic Journal
The Effects of Minimum Wages Throughout the Wage Distribution
David Neumark, Mark E. Schweitzer, William Wascher

Paper Summary

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The study looked at how minimum wage increases affect workers at different pay levels. Low-wage workers near the minimum wage see their wages go up, but they end up working fewer hours and losing jobs, leading to less overall income. Higher-wage workers are not affected much. When minimum wages go up, union members with lower wages benefit, but nonunion workers with the lowest wages lose out.