by Jon Sanders
Director of the Center for Food, Power, and Life, Research Editor, John Locke Foundation
The city of St. Louis plans to raise its minimum wage to $11/hour by 2018. A new study published by the Economic Policies Institute by economists David Macpherson of Trinity University and William Even of Miami University projects several negative impacts.
The city would sustain over 1,000 jobs lost, the economists find. Those job losses would fall disproportionately on:
Those findings are clearly within the mainstream of economic thinking on the minimum wage. The negative impacts of the minimum wage is one of the items about which economists are in greatest agreement. Furthermore, the negative impacts aren’t randomly distributed. The disemployed tend to be the least skilled, the poorest, the least educated. That is, the ones who most need the work.
Also: these negative effects are for hiking the minimum wage up to “only” $11/hour. Effects of hiking it to $15/hr. would be significantly worse — and likely even more disparate.
For what this idea would do to North Carolina, see my report, “Minimum Wage Hikes Hurt the Very People They’re Supposed to Help.”