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What the US gets wrong about minimum wage The Effects Of Minimum Wage From A

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Skip to search form Skip to main content You are currently offline. Some features of the site may not work correctly. Moser Published Economics. In this paper, I present a visual representation of the relationship between mean hourly total compensation divided by per-capita GDP, hours worked per capita, and the labor share, and show the represented labor equilibrium equation is the definition of the labor share. I also present visual examination of the productivity horizon and wage compression, and use these to show the relationship between productivity, available employment per capita, and minimum wage. View PDF on arXiv. Save to Library. Create Alert.

Workers and business owners have been at odds over the minimum wage debate for years. But a recent study actually shows some workers also suffer due to significant increases to the minimum wage.

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And a new study from the University of Washington has found an unintended consequence of raising the minimum wage to that level — decreased work hours. For business owners, paying employees a fair wage is clearly a noble goal.

But when small businesses with limited resources are forced to pay high hourly wages, it often means they have to make cuts in other areas. And in this case, cutting the actual working hours they can afford also has a negative impact on workers.

Seattle is not alone among cities and states deciding to raise minimum wages in recent years out of a desire to help lower paid workers. A number of them, including New York and Oregon, recently passed minimum wage increases.

So it could be worth monitoring the effects of of those larger increases too. Fight for 15 Photo via Shutterstock. Latest Posts. Share this.]