NBER finds Seattle wage increase reduced earnings

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  • onwebcam
    Fake Nick 1.0
    • Oct 2005
    • 27689
    #1

    NBER finds Seattle wage increase reduced earnings

    This paper evaluates the wage, employment, and hours effects of the first and second phase-in of the Seattle Minimum Wage Ordinance, which raised the minimum wage from $9.47 to $11 per hour in 2015 and to $13 per hour in 2016. Using a variety of methods to analyze employment in all sectors paying below a specified real hourly rate, we conclude that the second wage increase to $13 reduced hours worked in low-wage jobs by around 9 percent, while hourly wages in such jobs increased by around 3 percent. Consequently, total payroll fell for such jobs, implying that the minimum wage ordinance lowered low-wage employees? earnings by an average of $125 per month in 2016. Evidence attributes more modest effects to the first wage increase. We estimate an effect of zero when analyzing employment in the restaurant industry at all wage levels, comparable to many prior studies.

    Minimum Wage Increases, Wages, and Low-Wage Employment: Evidence from Seattle
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    • Steve Rupe
      Confirmed User
      • Nov 2016
      • 3070
      #2
      Originally posted by onwebcam
      This paper evaluates the wage, employment, and hours effects of the first and second phase-in of the Seattle Minimum Wage Ordinance, which raised the minimum wage from $9.47 to $11 per hour in 2015 and to $13 per hour in 2016. Using a variety of methods to analyze employment in all sectors paying below a specified real hourly rate, we conclude that the second wage increase to $13 reduced hours worked in low-wage jobs by around 9 percent, while hourly wages in such jobs increased by around 3 percent. Consequently, total payroll fell for such jobs, implying that the minimum wage ordinance lowered low-wage employees? earnings by an average of $125 per month in 2016. Evidence attributes more modest effects to the first wage increase. We estimate an effect of zero when analyzing employment in the restaurant industry at all wage levels, comparable to many prior studies.

      Minimum Wage Increases, Wages, and Low-Wage Employment: Evidence from Seattle
      If the article is true then it simply means that minimum wage workers are working less hours and making more per hours worked than ever before.

        Comment

        • onwebcam
          Fake Nick 1.0
          • Oct 2005
          • 27689
          #3
          Originally posted by Steve Rupe
          If the article is true then it simply means that minimum wage workers are working less hours and making more per hours worked than ever before.
          "Consequently, total payroll fell for such jobs, implying that the minimum wage ordinance lowered low-wage employees’ earnings by an average of $125 per month in 2016."

          It says right there it cut their "earnings" on average.

          As a business owner if I only have x amount of dollars to spend on "help" that's all I have to spend no matter what the hourly is.
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            Comment

            • CoolMikey
              Confirmed User
              • Jun 2017
              • 174
              #4
              Originally posted by Steve Rupe
              If the article is true then it simply means that minimum wage workers are working less hours and making more per hours worked than ever before.
              The goal wasn't to fuck business owners so minimum wage workers can have more time for leisure. The objective was to lift minimum wage workers out of poverty, a worthy goal, but clearly that goal was NOT accomplished.

              So the whole plan is a complete failure, as both business owner and employee became worse off after the minimum wage increase.

                Comment

                • Steve Rupe
                  Confirmed User
                  • Nov 2016
                  • 3070
                  #5
                  Originally posted by CoolMikey
                  The goal wasn't to fuck business owners so minimum wage workers can have more time for leisure. The objective was to lift minimum wage workers out of poverty, a worthy goal, but clearly that goal was NOT accomplished.

                  So the whole plan is a complete failure, both parties (business owner and employee) became worse off after the minimum wage increase.
                  Historically raising the minimum wage has never been a failure other than on a temporary basis. To my knowledge there is not any reason to expect the present to be any different. The problem with studies about any subject is they can and often are manipulated to obtain the result that the sponsor of the study wants to obtain or based upon faulty information or conclusions.

                    Comment

                    • Bladewire
                      StraightBro
                      • Aug 2003
                      • 56228
                      #6
                      Originally posted by CoolMikey
                      The goal wasn't to fuck business owners so minimum wage workers can have more time for leisure.
                      You are I'll informed.

                      Minimum wage workers in expensive areas require more money as "minimum" wage to pay higher rent, gas, utilities & food costs, like where I live.


                      Skype: CallTomNow

                        Comment

                        • Grapesoda
                          So Fucking Banned
                          • Jul 2003
                          • 46238
                          #7
                          Originally posted by onwebcam
                          "Consequently, total payroll fell for such jobs, implying that the minimum wage ordinance lowered low-wage employees? earnings by an average of $125 per month in 2016."

                          It says right there it cut their "earnings" on average.

                          As a business owner if I only have x amount of dollars to spend on "help" that's all I have to spend no matter what the hourly is.
                          this is where the issues start, lawmakers have no budgets, they just print more money

                            Comment

                            • CoolMikey
                              Confirmed User
                              • Jun 2017
                              • 174
                              #8
                              Originally posted by Bladewire
                              You are I'll informed.

                              Minimum wage workers in expensive areas require more money as "minimum" wage to pay higher rent, gas, utilities & food costs, like where I live.
                              You may have missed the detail that after minimum wage increase:

                              "Consequently, total payroll fell for such jobs, implying that the minimum wage ordinance lowered low-wage employees’ earnings by an average of $125 per month in 2016."

                              so minimum wage workers ended up with LESS money, so they certainly are not better off, business owner is not better off, and neither is the tax payer as that $125 reduction in earnings likely has to be covered by government assistance.

                              So like I said, it's a complete failure.

                                Comment

                                • Barry-xlovecam
                                  It's 42
                                  • Jun 2010
                                  • 18083
                                  #9
                                  Lower skilled jobs are being automated, robotized or eliminated perhaps?

                                  To be expected ...

                                    Comment

                                    • Bladewire
                                      StraightBro
                                      • Aug 2003
                                      • 56228
                                      #10
                                      Originally posted by CoolMikey
                                      You may have missed the detail that after minimum wage increase:

                                      "Consequently, total payroll fell for such jobs, implying that the minimum wage ordinance lowered low-wage employees? earnings by an average of $125 per month in 2016."

                                      so minimum wage workers ended up with LESS money, so they certainly are not better off, business owner is not better off, and neither is the tax payer as that $125 reduction in earnings likely has to be covered by government assistance.

                                      So like I said, it's a complete failure.
                                      Think with your own mind.

                                      Companies raise wages to pay BETTER than minimum wage to be competative with those paying minimum wage.

                                      We've been through this before in California you're spreading false propaganda.

                                      Example: I have a store with 2 minimum wage employees ($5 an hour) and one manager ($6 an hour) working a total of 120 hours a week. Minimum wage goes up to $6 an hour. Instead of paying 3 employees minimum wage @ $6 an hour, I raise the wage of the manager to $7 an hour, taking it out of the minimum wage bracket. Instead of having 3 minimum wage employees, I now have 2, and a manager @ $7 an hour (above minimum wage).

                                      See how that works? Use your mind.


                                      Skype: CallTomNow

                                        Comment

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