by Andrew Biggs, Mark J. Perry
American Enterprise Institute
April 02, 2014
Progressives are practically united in supporting periodic increases in the national minimum wage. The only disagreement is by how much. But note that we call it the national minimum wage. It’s a federally mandated minimum wage that applies universally across the country—in cities, suburbs, and rural communities; in places where the cost of living is high, such as Washington, D.C., and New York; and in the countless small towns and cities where the cost of living is far lower. And it’s partly this uniform, one-size-fits-all aspect of a national minimum wage that guarantees that it won’t work as expected, or at least won’t work well at all in thousands of America’s low-cost communities. Using different time periods and applying alternate statistical methods to the same data, researchers have confirmed the conventional economic wisdom: that a government-mandated floor on wages reduces employment opportunities for low-skilled workers.



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