New study of Seattle's $15 minimum wage says it costs jobs

Kelley Robertson | 27 June, 2017, 08:01

Under the city's law, the minimum wage will continue to be raised even higher in the future. Several cities and states have followed suit, including Los Angeles, as its main daily notes today while reporting on a study that calls that assumption into serious question. All employers will be required to pay at least $15 per hour in 2021.

The next development in the Seattle Minimum Wage Ordinance will happen on January 1, 2018, when large employers whose employees receive tips or health benefits will hit the $15 per hour mark.

But, a new study released on Monday by a team of economists at the University of Washington suggests the way hike led to a major decline in employment for low-wage workers, and a drop in hours for those who kept their jobs.

The current minimum in the city is $11, increasing to $13 on December 31.

In other words, exactly what conservatives and those who understand basic supply and demand predicted.

Raising minimum wages force businesses operating on tight budgets to increase the workload on more highly-skilled and salaried employees and to rethink new hires and the amount of hours employees work. It also determines that the minimum wage hike has resulted in there being 5,000 less low-wage jobs in the city, reports The Seattle Times. These estimates are robust to cutoffs other than $19.45.

The study has found that since 2014, low-pay wages have gone up by 3%. In particular, they mischaracterize it as implying that papers tend to show minimum wage hikes do not affect employment. The minimum wage is now $11 per hour for small businesses that offer either medical benefits or tips.

Putin Accuses US Of Meddling Abroad, Hopes For Better Russia Ties
The statements came during the Russian President's annual question and answer session, called " Direct Line with Putin". He added that Russian Federation is willing to grant asylum to James Comey , former chief of the U.S.

"My view of the research is that [the minimum wage] seems to work", Ben Zipperer, an economist at pro-minimum wage Economic Policy Institute, told WaPo. You do this because excess labor costs massively cut into relatively thin profit margins at places like grocery stores and fast food joints; increasing the hourly cost of labor only exacerbates this problem. It becomes too expensive for employers to take their chances on those unskilled employees because they are being forced to pay more than what their labor is worth.

The study estimated that the typical low-wage worker in that city lost $125 a month.

It's not just the scope of the losses, but the losses themselves which are remarkable for the public debate. As the opportunities for unskilled workers dry up, they have fewer opportunities to earn any living, while the labor market shifts to better-skilled workers who already had an advantage in the marketplace.

Neither study has yet been formally peer-reviewed, the New York Times reports. A downturn in the economy could mean a loss of more jobs and more hours.

The report, which used data from the State of Washington to make its analysis, does come with a caveat. If this is confirmed in subsequent studies, it suggests that a minimum wage of, say, $12 per hour, has a minimal effect on low-skill employment.

"I would agree with that conclusion", Long said.

Brazil's crisis deepens as president Michel Temer accused of corruption

Baby Doe's mother to be sentenced this week

Devils on the clock with No. 1 pick in NHL draft
The draft did see a record number of Finnish first rounders (six) as well as the highest ever pick from France, Alexandre Texier. It will be very interesting to see how well he does or where he fits in on the Florida roster with Barkov and Huberdeau there.

West Virginia Bracing For Remnants Of Cindy
Flooding is already a problem in dozens of communities, and before it's over some areas could see a foot of water or more. On Friday , forecasters were trying to verify exactly how many tornadoes touched down in Alabama during Cindy's passage.

Trump making case for apprenticeships to fill jobs gap
Volkswagen has touted apprenticeship programs at its Chattanooga manufacturing plant as a way to bridge the US skilled labor gap. White House Chief of Staff Reince Priebus and Secretary of Education Betsy DeVos also participated in the roundtable.
Not 'That Far Off' From Passing Health Overhaul
Sandoval said he would do "everything in my power" to make sure those people can maintain the quality of life they now have. Health and Human Services Secretary Tom Price defended the GOP health care plan Sunday from Republicans opposing the bill.

25 June 2017

Take greater responsibility for your people, United Nations refugee chief to South Sudan
The UN refugee agency reported that "very high" volumes of conflict and persecution is forcing people to flee their homes. The UN agency said it found a record 65.6 million people were forcibly displaced at the end of 2016.

25 June 2017

'Respect Anil Bhai's Views': Virat Kohli On Coach Row
It seems that not merely Kohli but also other players of the Indian team had grievances against the way Kumble functioned. Kumble has expressed surprise over Kohli's reservation against his "style" after resigning from the post.
Walker supports Johnson opposition to health care bill
In 2017, the average deductible for a silver plan is just under $3,600, according to Health Pocket, an insurance shopping site. His company was not one of the 10 that wrote to the Senate leaders, but he said Friday that he was also opposed to the bill.

25 June 2017

Israel strikes Syrian positions after fire toward it
Israel annexed the Golan area following the Six-Day War in 1967, but the move was never recognized by the worldwide community. Forces loyal to Syrian President Bashar al-Assad and Hezbollah have been clashing with rebels not far from the Golan Heights.

Dozen frustrated Dems face steep challenge to unseat Pelosi
After Hillary Clinton's loss to Donald Trump last November, a significant crop of Democratic lawmakers attempted to vote her out. She dismissed the members who have said it is time for a change as "blatantly self-serving" and "having fun on TV".
United States secure first win of America's Cup, trail NZ 4-1
It seemingly doesn't matter to Spithill that Oracle merely cut Team New Zealand's lead to 4-1 in the first-to-seven regatta. Races seven and eight are scheduled for Monday (NZT) where similar wind speeds of 8-10 knots are forecast.

UK: All building cladding samples tested failed fire safety
The manufacturer of the insulation used to clad Grenfell Tower said they would stop using the product on high-rise buildings . Look, you've got to err on the side of caution. "In some cases it's possible to take mitigating action", she told Sky news.

Mourinho accused of tax fraud
The football world in Spain has been rocked by charges of tax evasion or corruption pressed against some of its top stars. Real Madrid have refuted claims Jose Mourinho signed a contract to take over at the club before he left Inter.

Baby Doe's mother to be sentenced this week Bond was also charged for helping dispose of Bella's body - and for taking government benefits for her daughter after her death. When the girl stopped screaming, Bond testified that she saw that the girl's head appeared to be swollen and her face was gray.

Google to stop reading your Gmail to help sell adds Google is stopping one of the most controversial advertising formats: ads inside Gmail that scan users' e-mail contents. Google had been scanning through what Gmail users were discussing and then showing ads connected to some of the topics.

Federer wins Halle Open tennis title Things can happen, things can change, if he has tough matches en route, he might feel it physically in the final. The Czech was playing her fifth match since the stabbing she suffered at her home in Prostejov six months ago.

US Congressman Scalise Showing Improvement After Being Shot — Lead Surgeon The timing - early in the morning - and the targets - seemingly Republican elected leaders - make this crime even more insidious. At a press conference, President Trump says that wounded Scalise's condition is more hard than people first realized.

Boeing wins Paris order title as Airbus's Leahy announces retirement For the first time, it lumped these models with large two-engined jets such as the Boeing 777 and the largest Airbus A350. Prior to the lease and the new orders placed to Boeing , Blue Air operated a fleet of 25 Boeing 737 aircraft.

How to Watch the 2017 BET Awards Past winners include Lionel Richie, Smokey Robinson, James Brown, Gladys Knight, Prince among others. As for the performances, Bruno Mars , DJ Khaled , Big Sean , A$AP Rocky, Lil Wayne , Mary J.

Transformers tops U.S. box office but is biggest in China I did, however, find the amount of swearing in The Last Knight entirely unnecessary for something that should be a kids property. However, the fact that Michael Bay cares about the Transformers as much as Melania loves the Trumpster is infuriating.

Cable vehicle crashes in tourist resort in Kashmir, killing 7 As per former Chief Minister of J&K, Omar Abdullah's tweet ( @abdullah_omar ) this is first-of-its-kind accident in the valley. He said the chief minister also directed a high level inquiry to find the causes or lapses, if any, that led to the accident.

White House paints Handel win as Trump triumph These Democrats might be on to something, especially in light of the way Pelosi figured into the Republican campaign in Georgia. Asked if Pelosi should remain the top House Democratic leader in the next Congress , her number two, Rep.

England vs South Africa, 3rd T20I But he also showed touch too in flipping leg-spinner Imran Tahir over short fine leg for a four that saw him to fifty. Morris was the most successful bowler with two wickets, while Phehlukwayo and Dane Paterson claimed one wicket each.

Mark Wahlberg Admits He's 'Overprotective' About His Daughter's Dating Life Honestly, I'd be lying if I said I didn't have fun writing about how much I loathe these movies. The breathtaking visuals stand out - you can nearly pinpoint every detail in each scene.

Jose Mourinho accused of tax fraud in Spain Barcelona's Lionel Messi was sentenced to a 21-month jail sentence and 2.09 million euro fine previous year for tax fraud. Barcelona defender Javier Mascherano also agreed a one-year suspended sentence with authorities for tax fraud last year.

Escaped Georgia inmates captured in Tennessee after chase They are now being extradited back to Georgia to face Murder charges, as well as Federal charges for "Unlawful Flight". He also expressed gratitude to all of the law enforcement officers who provided support and assistance in the search.

27 towers fail fire safety checks in Britain, hundreds evacuated The government will work with local authorities to make sure any unsafe material is removed and residents are safe, she said . Specifics on where the buildings were located were not given, but officials said they were in 15 council areas.

Pelosi defends leadership following special election loss The message after four races according to the GOP: Americans aren't as sick of the chaos in Washington as the media says. But he said there is no doubt that "this is one occasion when we ought to say he deserves to take a victory lap".

New study of Seattle's $15 minimum wage says it costs jobs

Recommended