From the Wall Street Journal:
But economists and politicians are divided over the issue. "The effects of the minimum wage are declines in employment for the very least skilled workers," said David Neumark, a University of California, Irvine, professor who has studied the issue with Federal Reserve researcher William Wascher. Mr. Neumark argues the benefits of higher minimum wages sometimes accrue to teens in higher-income families taking part-time jobs. "A lot of the benefits of minimum wages leak out to families way above the poverty line," he said. Mr. Neumark and Alan Krueger, a Princeton University professor who is chairman of the Council of Economic Advisers and a top aide to Mr. Obama, have written competing studies on the effects of minimum-wage increases on fast-food workers in New Jersey. Mr. Krueger found positive effects while Mr. Neumark didn't.

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