Boost minimum wage to $9?
Obama proposal to raise the rate to $9/hour meets mixed reviews
Roger Showley, U-T SAN DIEGO
Friday, February 15, 2013
Kelly Cunningham, National University System
If the goal is to spur job creation at a time of persistently high unemployment, raising the minimum wage will decrease employment and harm those it purportedly is supposed to help. Studies show for every 10 percent increase in minimum wage, low and unskilled jobs decrease 1 percent to 3 percent. Employers hire workers based upon marginal profit potential. Higher wages require greater productivity to be profitable and are only realized by raising prices or with fewer workers having the same level of production. This decreases employment prospects the most for young and low-skilled workers. Minimum wages are not intended to be life-long earnings levels.