new study on the minimum wage confirms previous research that found the policy raises wages for low-income workers without reducing total employment. The paper may finally start to convince conservative critics of the minimum wage to reconsider their views. “[R]aising the minimum wage increases earnings growth at the bottom of the distribution, and those effects persist and indeed grow in magnitude over several years,” the authors write. At the same time, there’s little indication that other people will lose their jobs as a result of the minimum wage—the outcome conservatives always warn about.
The authors go on to note that “a large increase in minimum wages would blunt the worst of the income losses during the Great Recession,” though it would not completely reverse the effects.