A study suggests that higher minimum wages hit poorer bosses’ pockets
- January 4, 2020
- David Neumark, economics, The Economist, Jan. 4, 2019
A new paper by Lev Drucker and Katya Mazirov of Israel’s Ministry of Finance, and David Neumark of the University of California, Irvine, examines increases in Israel’s minimum wage in 2006-08 in search of an answer. The more low-wage workers a company employed, they found, the more its profits declined. Companies with 60-80% of staff earning the minimum wage saw their profits cut by almost half.
For the full story, please visit https://www.economist.com/finance-and-economics/2020/01/04/a-study-suggests-that-higher-minimum-wages-hit-poorer-bosses-pockets.
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- A study suggests that higher minimum wages hit poorer bosses' pockets