Monday, October 29, 2018
One of the first definitive studies of Seattle's experiment with the "living wage" was published by the authoritative National Bureau of Economic Research. It is titled Minimum Wage Increases and Individual Employment Trajectories. This study is a fairly complete and longitudinal study of low-wage workers who should have benefited from the wage hike.
The results were shocking: the bottom line is that average net earnings only increased $10/week, hours were cut, new people were not hired, experienced workers got all the benefit, but to make the weekly wage they had been making, the experienced workers had to find a second job outside of the city limits so as to not violate the living wage law. The net result is that supposedly progressive Seattle employers are paying no more than $3/per week/per covered worker in excess of what they paid before the 2014 law.
Admin's note: Participants in this discussion must follow the site's moderation policy. Profanity will be filtered. Abusive conduct is not allowed.