Study: Minimum Wage Hikes Are Not Job Killers

Minimum wage hikes don’t eliminate jobs, study finds

By Kathleen Maclay, Media Relations | December 1, 2010

BERKELEY —Increasing the minimum wage does not lead to the short- or long-term loss of low-paying jobs, according to a new study co-authored by University of California, Berkeley, economics professor Michael Reich and published in the November issue of the journal The Review of Economics and Statistics.

chart of economic growth patternsThe economic growth in the 17 states that (as of 2005) had a minimum wage level above the federal level was roughly the same as in the other states. The dotted line represents the 17 states and the solid line charts the others.

The study resolves the often conflicting research on the minimum wage in the United States and may provide guidance in future policy debates on the topic, said Reich, who is also the director of UC Berkeley’s Institute for Research on Labor and Employment.

The new study is available online:

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