If you think only Koch-funded ideologues worry about the effects of a large minimum wage increase on poorer workers, have a look at what Brookings Institution-affiliated labor economist Harry Holzer has to say about the consequences of a large minimum wage increase on the very people it is intended to help. Holzer does an excellent job of pointing out the peculiar effects of local minimum wage increases (e.g., driving low-wage jobs to nearby jurisdictions unaffected by the minimum wage increase), as well. >>>
LINK: A $15-hour minimum wage could harm America’s poorest workers (by Harry J. Holzer in Brookings)
[I]t might take time for employers of many low-skill workers to learn how to economize on their labor costs, but they will over time, since the incentives to do so are much larger – and that would be bad news for the very low-skill workers the higher minimum wage is designed to help. For instance, fast-food workers might be more easily replaced by robots. Hotels may reduce their tendency to automatically clean the rooms of their guests, and may charge extra for doing so. In the state of New York, fast-food franchises will probably be replaced by other kinds of restaurants and food services. Employers in these industries will also likely demand better education, skills and experience among those whom they hire.
What do you think?