Here’s Who Was Helped — And Who Was Hurt — By Seattle’s Minimum Wage Increase

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Jul 7, 2004
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#1
Here’s Who Was Helped — And Who Was Hurt — By Seattle’s Minimum Wage Increase
Erik McGregor/Pacific Press/LightRocket via Getty Images


ByASHE SCHOW
@ASHESCHOW
October 23, 2018

Economists and partisans across the country have been watching Seattle’s minimum-wage increase looking to confirm their preconceived notions about the policy.
A year ago, researchers from Amazon, New York University, and the University of Washington studied how the wage increases affected 25,000 low-wage workers. This Monday, they released an update.
Quartz reports the study found that some were helped, but many were hurt by the wage increase.
Here’s Who Was Helped
More experienced low-wage earners did receive a slight pay increase. Their hours were decreased, but the higher pay made up for it. So, some people got more pay for less work. Nice for them, but probably not so good for the business.

Here’s Who Was Hurt
Everyone else. Less experienced low-wage workers had their hours cut so much that the higher pay didn’t make up the difference. They ended up with less pay, or the same as before. Further, low-skilled, less-experienced workers found it harder to even find a job in the city.
“The economists also looked at rates of entry, or how many people, who did not work before and have no skills, entered the labor market following the wage increase,” Quartz reported. “The estimate that right after the minimum wage went up, entry rates flattened and eventually fell as the minimum wage went up further, suggesting less experienced workers were offered fewer opportunities for work. Meanwhile, in neighboring counties, entry rates continued to increase before leveling off in 2017.”
The economists then concluded: “Seattle’s minimum wage ordinance appears to have delivered higher pay to experienced workers at the cost of reduced opportunity for the inexperienced.”
Seattle voted for the wage increase in 2014. The minimum wage would increase gradually to $15 an hour over a three-year period. Because the counties around Seattle did not increase their minimum wage, economists got a good look at how such an increase would work in a test city.

But they also cautioned that the results couldn’t be generalized, since Seattle went through an economic boom during this time. One would need to look at a city that increased wages in a city not experiencing an economic boom because from the looks of the Seattle experiment, people trying to enter the workforce and gain experience will be out of luck. If they couldn’t even get jobs during a boom, how could they in normal economic times?
Of course, this study and others like it will likely not deter activists who have been calling for the wage increase. Sen. Bernie Sanders (Socialist-VT) is the most ardent supporter of the increase, and even introduced the “Stop BEZOS Act” to bully Amazon CEO Jeff Bezos into increasing the minimum wage for his employees. It worked, so Sanders turned his attention to McDonald’s and other fast food companies. Sanders’ acolytes, such as Alexandria Ocasio-Cortez, also continue to support the wage increases despite studies and evidence that they harm more than they help.
 

pokes16

Territorial Marshal
Oct 16, 2003
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#2
I love the minimum wage argument. But why stop at $15 why not $25 or $50 or even $100 per hour? I'm sure all the businesses out there can afford it and their customers will not mind paying extra for the same product.


1540330006491.png
 

cowboyinexile

Have some class
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Jun 29, 2004
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#3
Here’s Who Was Helped — And Who Was Hurt — By Seattle’s Minimum Wage Increase
Erik McGregor/Pacific Press/LightRocket via Getty Images


ByASHE SCHOW
@ASHESCHOW
October 23, 2018

Economists and partisans across the country have been watching Seattle’s minimum-wage increase looking to confirm their preconceived notions about the policy.
A year ago, researchers from Amazon, New York University, and the University of Washington studied how the wage increases affected 25,000 low-wage workers. This Monday, they released an update.
Quartz reports the study found that some were helped, but many were hurt by the wage increase.
Here’s Who Was Helped
More experienced low-wage earners did receive a slight pay increase. Their hours were decreased, but the higher pay made up for it. So, some people got more pay for less work. Nice for them, but probably not so good for the business.

Here’s Who Was Hurt
Everyone else. Less experienced low-wage workers had their hours cut so much that the higher pay didn’t make up the difference. They ended up with less pay, or the same as before. Further, low-skilled, less-experienced workers found it harder to even find a job in the city.
“The economists also looked at rates of entry, or how many people, who did not work before and have no skills, entered the labor market following the wage increase,” Quartz reported. “The estimate that right after the minimum wage went up, entry rates flattened and eventually fell as the minimum wage went up further, suggesting less experienced workers were offered fewer opportunities for work. Meanwhile, in neighboring counties, entry rates continued to increase before leveling off in 2017.”
The economists then concluded: “Seattle’s minimum wage ordinance appears to have delivered higher pay to experienced workers at the cost of reduced opportunity for the inexperienced.”
Seattle voted for the wage increase in 2014. The minimum wage would increase gradually to $15 an hour over a three-year period. Because the counties around Seattle did not increase their minimum wage, economists got a good look at how such an increase would work in a test city.

But they also cautioned that the results couldn’t be generalized, since Seattle went through an economic boom during this time. One would need to look at a city that increased wages in a city not experiencing an economic boom because from the looks of the Seattle experiment, people trying to enter the workforce and gain experience will be out of luck. If they couldn’t even get jobs during a boom, how could they in normal economic times?
Of course, this study and others like it will likely not deter activists who have been calling for the wage increase. Sen. Bernie Sanders (Socialist-VT) is the most ardent supporter of the increase, and even introduced the “Stop BEZOS Act” to bully Amazon CEO Jeff Bezos into increasing the minimum wage for his employees. It worked, so Sanders turned his attention to McDonald’s and other fast food companies. Sanders’ acolytes, such as Alexandria Ocasio-Cortez, also continue to support the wage increases despite studies and evidence that they harm more than they help.
Would
 
Nov 26, 2008
4,627
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#4
Let's just make minimum wage a million dollars.
Then we'd all be millionaires
Poverty eradicated!

duh, makes too much sense, no wonder the government hasn't thought of it, am I right huh?
 

StillwaterTownie

Federal Marshal
Jun 18, 2010
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#6
Interesting how conservatives on here never try to make a case for how economies of Arkansas, Colorado and Nebraska have been badly hurt for having their minimum wage jacked up higher than Oklahoma. It's obviously because they don't have a case. Why?

Oklahoma min. wage: $7.25, unemployment rate - 3.5%
Arkansas min. wage: $ 8.50, unemployment rate - 3.5%
Nebraska min. wage: $9.00, unemployment rate - 2.8%
Colorado min. wage: $10.20, unemployment rate - 3.1%

In November, Arkansas will vote again to jack up the minimum wage to peak out at $11 in 2021. Polling shows it has wide support. Several other states will be voting to raise minimum wage.
 
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StillwaterTownie

Federal Marshal
Jun 18, 2010
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#7
I love the minimum wage argument. But why stop at $15 why not $25 or $50 or even $100 per hour? I'm sure all the businesses out there can afford it and their customers will not mind paying extra for the same product.


View attachment 65580
Hell, once again I say, why not ban all minimum wages in order to give greedy companies the freedom to use the newly freed up labor market to see just how close to ZERO American workers are willing to work for? Maybe down to $3 an hour for no skill jobs? Even less than that? Anyway, surely all conservatives would quite strongly support doing that. However, on the other hand, conservatives would have to worry about the severe downsides. A couple of them would be expansion of those eligible for welfare and increased efforts to unionize low pay workers. Conservative cynics can say, if they want, that unions wouldn't care about low pay workers, because there isn't much money to be had from them.
 
Last edited:
Jul 7, 2004
4,033
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1,743
#8
Hell, once again I say, why not ban all minimum wages in order to give greedy companies the freedom to use the newly freed up labor market to see just how close to ZERO American workers are willing to work for? Maybe down to $3 an hour for no skill jobs? Even less than that? Anyway, surely all conservatives would quite strongly support doing that. However, on the other hand, conservatives would have to worry about the severe downsides. A couple of them would be expansion of those eligible for welfare and increased efforts to unionize low pay workers. Conservative cynics can say, if they want, that unions wouldn't care about low pay workers, because there isn't much money to be had from them.
The government should not set any minimum wage. Do you really believe that any American would work for $3 an hour in Trumps booming economy? Illegals might but maybe then you lefties would support deportation.
 

CowboyOrangeFan

Mmmm, yeah.
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Jun 9, 2006
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#9
The government should not set any minimum wage. Do you really believe that any American would work for $3 an hour in Trumps booming economy? Illegals might but maybe then you lefties would support deportation.
Man, even when you are on the right side of an issue you still sound like a jackhole.
 

CocoCincinnati

Federal Marshal
Feb 7, 2007
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#10
I notice the study said nothing about any change in cost of living brought on by the wage increase. So eve if the experience workers make a little more, they still may not be doing better than they were before if that money doesn't go as far. Also, if these people are that experienced (and if they are hard working as well), then they may have earned raises and made more money on their own even without the governments help.

Regardless, it seems clear that the people who this type of law is most supposed to help are the people that it is most likely to hurt. Where have I heard that before....hmm....oh yes from every conservative on the planet before this law was ever implemented.