GHEI: Higher wages, lower employment
GHEI: Higher wages, lower employment
- January 10, 2013
- A study by David Neumark, economics Chancellor's Professor and Center for Economics & Public Policy Director, is featured in the Washington Times January 10, 2013
From the Washington Times:
It doesn’t take an economics degree to realize when the price of something goes up,
demand goes down. The same is true for employees. When it costs substantially more
to hire someone, businesses have to think twice about whether the new hire is something
they can afford. Actual economists have been hard at work for the past few decades
trying to prove the opposite. After all, it would indeed be quite a good thing if
one could simply legislate higher wages for all without downsides such as putting
people out of work. A study released Wednesday by the Employment Policies Institute
(EPI) shows prior work on the topic may have involved a bit too much wishful thinking.
In the report, University of California, Irvine economists David Neumark and Ian Sales
navigate the flaws in economic works that attempt to advance the premise that a higher
minimum wage has no connection to job loss. Mr. Neumark and Mr. Sales found the flawed
studies had thrown out valid data and used inappropriate control groups to reach what
must have been the desired conclusion.
For the full story, please visit http://www.washingtontimes.com/news/2013/jan/10/higher-wages-lower-emplo....
Share on:
connect with us