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[–] brainbaobao 14 points 222 points (+236|-14) ago  (edited ago)

I have academic studies that support the claim that raising the minimum wage does not hike unemployment. I'd trust studies from notable universities over news articles.

http://www.cepr.net/documents/publications/min-wage-2013-02.pdf

http://www.irle.berkeley.edu/workingpapers/166-08.pdf

http://www.irle.berkeley.edu/workingpapers/157-07.pdf

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.15.5661&rep=rep1&type=pdf

Also, your articles on Seattle's unemployment aren't based on data. Here is unemployment data from wa.gov. As you can see, the number of people looking for jobs in washington went down. Shouldn't it have went up if massive numbers of people were laid off?

https://fortress.wa.gov/esd/employmentdata/docs/economic-reports/mer-2015-06.pdf

edit: added seattle

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[–] flyawayhigh [S] 3 points 55 points (+58|-3) ago  (edited ago)

Edit: @brainbaobao did a much better job than I did on the studies here, so I cut that part out of this reply. (Less reading for all):D

THE BIG PICTURE

Minimum wage is very low compared to historical standards when the economy was better. If nothing else, we know that we can have a good economy with a much higher minimum wage, since we have before. Our economic problems lie elsewhere.

What this clearly shows is ... the minimum wage is not responsible for bad economics, even if some would lose their jobs in the immediate aftermath. But that too, is tenuous, as the above studies show.

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[–] brainbaobao 0 points 10 points (+10|-0) ago 

I agree. The people who are actually affected are only the people getting paid minimum wage. Those individuals currently do not have much, if any money to spend, and are essentially bystanders in the type of economy we have.

I also agree that we need more case studies on this. These estimates are thrown around as if they were absolutes, even though they don't have much backing at all (I highly suggest Innumeracy for further reading on this, it describes this phenomenon extensively)

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[–] PM_ME_UR_NOODZ 1 points 0 points (+1|-1) ago  (edited ago)

even if some would lose their jobs in the immediate aftermath. But that too, is tenuous, as the above studies show

You're misunderstanding the studies. Studies show the effects of real world examples of wage hikes of like 10-25% scheduled far in advance of when the law takes effect. The market can adapt to that far better than a jump from 7.25 to 15.

Market shocks cause unemployment regardless of whether businesses or the economy as a whole could adapt because it doesn't allow sufficient adjustments. It would even contribute to the "rich get richer" phenomenon because only those with deep pockets could survive. McDonald's, Starbucks, Pizza Hut, they'll find a way. Those little local shops would be toast.

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[–] MaryJanesBestBud 2 points 15 points (+17|-2) ago 

I really like that you took the time to write this all out. Any way we could get a tldr?

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[–] brainbaobao 0 points 17 points (+17|-0) ago 

Thanks! I copied the conclusions from each study below.

http://www.cepr.net/documents/publications/min-wage-2013-02.pdf

Economists have conducted hundreds of studies of the employment impact of the minimum wage. Summarizing those studies is a daunting task, but two recent meta-studies analyzing the research conducted since the early 1990s concludes that the minimum wage has little or no discernible effect on the employment prospects of low-wage workers.

http://www.irle.berkeley.edu/workingpapers/166-08.pdf

Put simply, our findings indicate that minimum wage increases—in the range that have been implemented in the United States—do not reduce employment among teens

http://www.irle.berkeley.edu/workingpapers/157-07.pdf

These estimates suggest no detectable employment losses from the kind of minimum wage increases we have seen in the United States.

http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.15.5661&rep=rep1&type=pdf

The increase in New Jersey’s minimum wage probably had no effect on total employment in New Jersey’s fast-food industry, and possibly had a small positive effect

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[–] Gake_The_Cake 0 points 9 points (+9|-0) ago 

I would upvoat you, but I'm 1 point away from that. So instead I'll simply give my kudos.

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[–] Fitblue 0 points 1 points (+1|-0) ago 

I'll give you some upvoats!

[–] [deleted] 0 points 4 points (+4|-0) ago 

[Deleted]

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[–] Einmensch 0 points 0 points (+0|-0) ago 

Quite a few states already have over $9/hr min. wage, but you have a good point that increasing it to $15 coould have some big consequences good or bad that we probably can't predict or speculate accurately. Not only that but such a big change will probably create different consequences over time, so some things may for example get better initially, then worse, then better, or some variation on that.

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[–] brainbaobao 0 points 0 points (+0|-0) ago  (edited ago)

I'm hoping someone does case studies on places like Seattle and other cities that have a high minimum wage. From my glances at the data, not much has changed so far in Seattle, but I'll reserve judgment and wait for a study with good methodology.