Outten & Golden: Empowering Employees in the Workplace

Raising the minimum wage doesn't hurt jobs—it improves people's lives in ways you might not expect

July 10th, 2019 | Laura Clawson

Raising the minimum wage doesn’t hurt job growth. We know this because economist after economist has produced research backing up that statement, often drawing on parts of the U.S. that have increased the minimum wage. That’s why, after the Congressional Budget Office on Monday blew off its responsibility to use the best available information and offered Republicans fuel to claim that a minimum wage increase would cost jobs, economists who study minimum wage increases are lining up to explain why the CBO is just plain wrong.

“While they are acknowledging some of the research,” the Economic Policy Institute’s Ben Zipperer told The Washington Post, “I think they are drawing on older research that the new research has pointed out is problematic.” Berkeley economist Michael Reich and UMass-Amherst economist Arindrajit Dube made similar points, with Reich saying that the CBO’s equal reliance on high- and low-quality studies “reveals an unwillingness to recognize the major differences in scientific quality among studies.”

A recent study by Dube and Zipperer, along with Dorok Cengiz and Attila Lindner, “evaluated the local effect of more than 130 minimum-wage increases since 1979 and showed the fall in jobs paying less than the new minimum wage had been fully offset by the jump in new jobs paying just over it.” One hundred and thirty over 40 years. That’s a lot of data. It’s especially a lot of data for the CBO to be more or less ignoring.

But! That’s not all! Economists have other data showing important effects of raising the minimum wage. When the minimum wage rises, suicides fall. So does recidivism for recently released prisoners. Workers are more productive and less likely to change jobs. Consumer spending rises and poverty falls. In short, the working people’s economy gets better and people get happier and more hopeful. Republicans, of course, remain bitterly opposed to this.

This blog was originally published at Daily Kos on July 9, 2019. Reprinted with permission.

About the Author: Laura Clawson is labor editor at Daily Kos.

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