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Workers Earning Less Money After Seattle’s $15 Min Wage Hike — Guess Why?

Some workers were helped by Seattle’s minimum wage spike, but the vast majority of others were hurt.

Johnny Salvatore

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Some workers were helped by Seattle’s minimum wage spike, but the vast majority of others were hurt.

In fact, the ones hurting the most are the very people this hike was intended to help.

Here’s the scoop (bold mine)…

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From Daily Wire:

More experienced low-wage earners did receive a slight pay increase. Their hours were decreased, but the higher pay made up for it. So, some people got more pay for less work. Nice for them, but probably not so good for the business.

[…]

Everyone else. Less experienced low-wage workers had their hours cut so much that the higher pay didn’t make up the difference. They ended up with less pay, or the same as before. Further, low-skilled, less-experienced workers found it harder to even find a job in the city.

“The economists also looked at rates of entry, or how many people, who did not work before and have no skills, entered the labor market following the wage increase,” Quartz reported. “The estimate that right after the minimum wage went up, entry rates flattened and eventually fell as the minimum wage went up further, suggesting less experienced workers were offered fewer opportunities for work. Meanwhile, in neighboring counties, entry rates continued to increase before leveling off in 2017.”

The economists then concluded: “Seattle’s minimum wage ordinance appears to have delivered higher pay to experienced workers at the cost of reduced opportunity for the inexperienced.”

These results shouldn’t come as a shock.

When the minimum wage goes up, companies are forced to cut back hours for employees, raise their prices, and/or stop hiring altogether.

More from MyNorthwest:

“When the minimum wage is as high as it is — you are looking at someone with no experience who you are going to have to train on the job, compared to finding an experienced worker who knows the job already, who can start work on day one, that is changing the decision for (employers),” said UW researcher Jacob Vigdor. “They are more likely to favor hiring someone with experience, if they can find them.”

“What we see in Seattle is the number of people newly entering the workforce sort of peaked right around the time the minimum wage started increasing, and it’s actually declined since then,” he said.

[…]

Employers may have given extra hours to the workers they retained, or just cut hours, too. Overall, the money paid out to Seattle minimum wage workers had declined.

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