The question of the hour is whether a bigger minimum wage limit would work to the interest of employees or not. The main concern is that companies can’t cover the additional bills, therefore, leaving them no choice than to cut hours or even jobs. That’s been the main debate since 2014 when Seattle voted to boost this limit up to $15 an hour. The plan is ongoing, yet a new comprehensive study has just proved that this is bad for everyone.
The New Study Reveals That Employees Suffered Financial Consequences Since the Increased Minimum Wage
For several years now, the city of Seattle is going to great length to attain a minimum wage limit of $15 per hour. Even though they are not there yet, some organizations are already feeling the pressure. Therefore, they had no choice than to appeal to drastic decisions in order to afford to keep up with the new regulation. These strategies included postponing new positions, reducing hours, cutting payrolls, and even firing people.
The University of Washington had its team of economists work on a comprehensive study. The findings appeared as a working paper courtesy of the National Bureau of Economic Research, yet it was not peer reviewed.
The key conclusion of the research was that the average worker in Seattle lost $125 per month. On top of that, this loss was triggered by an increased minimum. This important finding is in contradiction with many other studies that were used to decide this regulation.
The Study Used Crucial Data that Never Appeared Before in Other Papers
However, the study might not apply to reality particularly for its thorough case. Researchers decided to exclude large companies from their work. This is because they wanted to avoid creating confusions between companies that are and are not subject to this regulation. Those who oppose the result of the research are pointing at this feature as an agent of incongruence.
On the other hand, the new paper used crucial data that the previous works did not take into consideration. These precious documents came from state records concerning employees. Nonetheless, the states continue their campaign to exacerbate minimum wage by 2020.
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