A High Minimum Wage is Good for Everybody

happy workers in a factory

Raising the minimum wage helps you no matter how much you earn. The next time the debate about whether or not your region of the world should raise wages you ought to argue for rating wages. The only downside of getting paid more is that…well, nothing really. Don’t believe the lies that raising minimum wage increases leads to job losses because there’s no evidence that that is the case.

Economist Arindrajit Dube of the University of Massachusetts at Amherst, who is perhaps the leading expert on the economic impact of the minimum wage, and his co-authors Doruk Cengiz (also at UMass), Attila Lindner of University College London, and Ben Zipperer of the Economic Policy Institute conducted the study. They used detailed data and advanced statistical methods to parse the effects of minimum-wage increases on low-skilled workers—including those making at or around the minimum wage—as well as on high-skilled workers and the economy as a whole.

The study finds that minimum-wage increases occurring over more than three-and-a-half decades resulted in higher wages for low-skilled workers, with no reduction in low-wage employment five years out. This was true overall, and separately for younger workers, less educated workers, and minorities. Low-wage workers saw a wage gain of 7 percent after an increase in the minimum wage.

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