Josiah Bartlett Center
Keeping you up to date on our latest research
on the issues impacting New Hampshire
Proposals at the state and national level to increase the minimum wage will hurt the job market, decrease the number of jobs available, and hurt the people advocates are trying to help. Specifically, the higher wage will make it more expensive to hire entry level workers and reduce opportunities for lower skill workers trying to build job experience.
The current federal and state minimum wage is $7.25 per hour. It is a minimum that affects few employees. Nationally, only 2.7% of all wage and salary workers earn the minimum or less (1.2% of workers are at the minimum while 1.5% have jobs that can legally pay less than the minimum like golf caddies, outside sales, or farm labor).
Economists are paraded about by both sides to advocate for and against and to discuss the effects. A 2007 National Bureau of Economic Research paper reviewing the literature found “a lack of consensus about the overall effects on low-wage employment.” But lest you think the research is completely up in the air, the authors noted “the studies that focus on the least-skilled groups provide relatively overwhelming evidence of stronger disemployment effects for these groups.”....Click here to keep reading