Published: Mon, June 26, 2017
Markets | By Noel Gibbs

New study of Seattle's $15 minimum wage says it costs jobs

New study of Seattle's $15 minimum wage says it costs jobs

"The long-run effects of Seattle's minimum wage increases may be substantially greater, particularly since subsequent changes beyond a final increase to $15 per hour will be indexed to inflation", the new UW study says. The Seattle Minimum Wage Study Team at the University of Washington looked at the results when the wage jumped to just $11 an hour and they found the following: "T$3 he early evidence from Seattle is that a higher minimum wage at the city level doesn't raise total earnings by much, because low-skilled workers end up with fewer hours on the job", while also citing that those who were fortunate enough to keep working "were modestly better off as a result".

The economists studied how the increase in the minimum wage affected Seattle's restaurant industry where pay reached $13 per hour in large companies.

Self-serve ordering kiosks could help fast-food chains cut costs - and worker jobs - at a time when the minimum wage is rising.

Seattle was one of the first USA cities to adopt a $15 minimum wage law, and its experience is being closely watched as other cities have followed suit and as advocates push for a higher federal minimum wage. It may have longterm effects because, even if it is getting harder, most minimum-wage workers get raises and earn more over time.

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A study looking at Seattle's minimum wage hikes has found that it is likely hurting jobs.

To read this article in one of Houston's most-spoken languages, click on the button below. Compared to that model, Seattle underperformed significantly among those earning less than $19 an hour. However, Long said, the UW study looked at a different set of data and was therefore able to zero in on low-wage jobs in particular, which is where they say the drop came.

The results suggest increasing the minimum wage to large, arbitrary round numbers isn't costless. However, hours available to work are down by 9% and employers are now paying 6% less collectively than before. And the authors constructed a "synthetic" model of Washington state businesses located outside of Seattle which weren't impacted by the new minimum-wage law. It will have a substantial impact on the debate.

That finding may appear to contradict a study that came out last week on the minimum wage by economists at U.C. Berkeley. "It suggests that we should be proceeding cautiously when we start pushing minimum wages into ranges where they are pretty significant".

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Jacob Vigdor, a public policy professor and one of the authors of the new report, stood by the team's findings.

Supporters of the bill say, "More than 40 percent of IL workers across all industries, across all age ranges and across all points of IL, will benefit from a wage increase", according to a news release from labor union SEIU Healthcare. Supporters insist that placing more money in the pockets of low-wage workers will provide them with more purchasing power and boost the local economy.

The bottom line is that the minimum-wage law was supposedly created to help the poor and needy in our society.

The study, which was commissioned by the Seattle City Council, analyzed quarterly hours and earnings data from the Washington Employment Security Department, which administers unemployment insurance. And led politicians, labor advocates, and pundits to conclude that negligible employment effects from small wage increases meant big increases would work, too. Evidence attributes more modest effects to the first wage increase.

Nabors Industries Ltd. (NYSE:NBR) closed with a change of 3.01%
COPYRIGHT VIOLATION WARNING: This report was originally published by Transcript Daily and is the property of of Transcript Daily. The Average Volume of the company is 9.19 Million, while the Volume of the company in the last trading session was 10.2 Billion.

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