Why eliminating minimum wage

The Sunnyvale City Council updated its minimum wage ordinance in Denver enacted its own minimum wage in by city council ordinance. Prior to July 1, , these tipped minimums were set as percentages of the regular minimum.

However, in October , the D. City Council overruled the voter-approved measure, returning the tipped minimum wage to the original increase schedule in the ordinance.

Georgia exempts tipped employees from its minimum wage law. Chicago amended its minimum wage ordinance in The minimum wage listed applies to employers with 21 or more employees. Cook County enacted its own minimum wage ordinance in This provision will take effect in when the local minimum wage will exceed the state minimum.

Workers under age 19 who work no more than 20 hours per week are exempt from the county minimum wage. By adopting the initiative, the legislature removed the measure from the ballot. No increase is made if the state unemployment rate in the preceding year is 8. Minneapolis enacted its own minimum wage in by city council ordinance.

Same as the regular minimum wage. Minnesota St. Paul enacted its own minimum wage in by city council ordinance. The St. Businesses of different sizes have different raise schedules. See the notes for the regular minimum wage for details. Therefore the increases specified in the Kansas City ordinance have not gone into effect; the state minimum wage applies. Missouri St. Louis enacted its own minimum wage in by city ordinance. Louis measure in October , just before it was scheduled to take effect.

However, the state legislature subsequently passed a new preemption law to undo the St. Louis increase. Louis metropolitan area, rounded to nearest 5 cents, beginning Louis measure in October However, the state legislature subsequently passed a new premption law to undo the St. See notes. The Nevada Constitution requires that the state minimum wage be adjusted annually based upon the cumulative inflation as measured by the CPI since December 31, All workers must be paid at least the state minimum wage regardless of health care or child care benefits.

The county ordinance does not apply to the City of Albuquerque, which sets its own minimum wage. Las Cruces enacted its own minimum wage in by city council ordinance. The county ordinance applies to businesses outside the incorporated boundaries of the City of Santa Fe. State law establishes separate minimum wage rates for New York City and downstate counties. The New York minimum wage law allows for wage orders that govern wage requirements in specific industries.

In , a wage board for the fast-food industry set higher minimum wages for workers in fast food. This rate applies to all tipped workers except those in the fast-food industry, who are subject to a separate minimum wage schedule.

A minimum wage, however, upsets this happy equilibrium because it sets a price floor in the market for labor. If it is below the natural wage rate, then nothing changes.

The result: more unemployment. But society as a whole is worse off, as transactions that would have benefited both buyers and suppliers of labor will not occur because of the minimum wage. Now those jobs are gone, as well as the goods and services that they would have produced.

The minimum wage has been a hobgoblin of economism since its origins. You do harm all around, with no comparable compensation. An army of commentators has responded by reminding us of what we should have learned in Economics Thus governmental interferences such as minimum-wage laws lower the quantity of labor demanded.

Obviously therefore a rise in wage costs of four or five times that is going to have significant unemployment effects. The real impact of the minimum wage, however, is much less clear than these talking points might indicate. Looking at historical experience, there is no obvious relationship between the minimum wage and unemployment: adjusted for inflation, the federal minimum was highest from through , when the unemployment rate was below 4 percent—a historically low level.

When economists try to tackle this question, they come up with all sorts of results. Today, people on both sides of the debate can cite papers supporting their position, and reviews of the academic research disagree on what conclusions to draw. David Neumark and William Wascher, economists who have long argued against the minimum wage, reviewed more than one hundred empirical papers in On the other hand, two recent meta-studies which pool together the results of multiple analyses have found that increasing the minimum wage does not have a significant impact on employment.

Not surprisingly, Neumark and Wascher have contested this approach. The idea that a higher minimum wage might not increase unemployment runs directly counter to the lessons of Economics According to the textbook, if labor becomes more expensive, companies buy less of it.

But there are several reasons why the real world does not behave so predictably. Although the standard model predicts that employers will replace workers with machines if wages increase, additional labor-saving technologies are not available to every company at a reasonable cost. Small employers in particular have limited flexibility; at their scale, they may not be able to maintain their operations with fewer workers. Imagine a local copy shop: No matter how fast the copy machine is, there still needs to be one person to deal with customers.

Source: Restaurant Dive. Read the research here. Alan J. Auerbach, the Robert D. The credible estimation of causal effects is a central task of applied econometrics. Two tools for this purpose that