To the editor:
This year, less-skilled job seekers in 43 states and localities have a little less to celebrate following planned minimum wage hikes. Twenty states and 23 localities are raising minimum wages, including 15 that will reach or rise above $15 an hour.
These higher wage mandates have shown to come at a high cost to employers and employees. In the Bay Area, for instance, a Harvard study found that each dollar increase in the base wage caused a 14 percent spike in closures for certain restaurants.
My organization has also chronicled the stories of dozens of businesses across the country that have been negatively affected by rising wages. They can be viewed at Facesof15.com.
While minimum wage hikes can be well-intentioned, they most often hurt those they are intended to help. Policymakers should use caution before mandating additional wage hikes that are shown to cause more harm than good.
Employment Policies Institute