National University System Institute for Policy Research

(858) 642-8498 Get Started

EconoMeter on local minimum wage: Fair or foul?

Roger Showley, U-T SAN DIEGO

Friday, May 2, 2014

View Article

Kelly Cunningham, National University System
Answer: YES

Such large discrepancy in minimum wage from the rest of the state and particularly nearby communities makes the City of San Diego considerably less competitive. Essentially outlawing low-paying jobs, least skilled and inexperienced workers face another barrier to obtaining work and reaching the first rung of income mobility. In upcoming National University System research, minimum wage discrepancies of more than $1.00 between bordering states were found to occur in only seven cases among 214 instances observed. Small differences in minimum wage may have minimal impact, but wide variances significantly disrupt the capabilities of businesses to be competitive within many industries.