CATO Institute: New Research on The Minimum Wage and the Great Recession

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During the last part of the previous decade, the average effective minimum wage rose by nearly 30 percent across the United States.

New research from Jeffrey Clemens and Michael Wither analyzes the effects on the employment and income trajectories of low-skilled workers during the Great Recession and subsequent recovery. The authors estimate that the minimum wage increases reduced the employment-to-population ratio of working age adults by 0.7 percentage points, accounting for 14 percent of the total decline. Low-skilled workers in particular were hurt by minimum wage policies, despite being the purported beneficiaries.

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