From NJ Biz:
The Assembly Labor Committee has approved legislation to raise the mandatory minimum wage from $7.25 per hour to $8.50 per hour, plus automatic increases for inflation. Supporters argue that it would help the working poor keep up with the cost of living. The reality is that an arbitrary increase will reduce the demand for entry-level labor. David Neumark, director of the Center for Economics and Public Policy at the University of California, Irvine, said in a recent article: "The consensus from a lot of studies I've surveyed, including my own, says that a 10 percent increase in the minimum wage reduces employment for those very low-skill groups by about 1 to 2 percent."

For the full story, please visit http://www.njbiz.com/article/20120302/NJBIZ01/120309952/-1/opinion/READE....
 

 

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