Thursday, July 31, 2014
Does raising the minimum wage raise teen unemployment?
Does raising the minimum wage tend to raise teen unemployment? Very possibly.
When wages go down -- typically in the US due to pressuring or eliminating a labor union -- the quality of hires tends to go down.
When bottom end wages go up that naturally attracts better quality hires -- often read more adult workers. Since one of the big (phoney) arguments against raising the minimum wage is that it is no big help because it is mostly earned by teenagers living at home -- figure out whether it is a bigger, more critical issue to fret the loss of a few teen jobs, or to pay adults enough to raise a family.