From an editorial in today's Investor's Business Daily by economists William Even and David Macpherson:
"Each 10% increase in the minimum wage [since 2007] was accompanied by a decrease in employment of 1.2% for Hispanic males, 2.5% for white males and 6.5% for black males. When looking at hours worked, we saw a similar effect: Each 10% increase in the minimum wage reduced hours worked by 1.7% for Hispanic males, 3% for white males and 6.6% for black males.
The data clearly show a disproportionate loss of hours and employment for black young adults. Let's put these lost opportunities into context. Between 2007 and 2010, employment for 16- to 24-year-old black males fell by approximately 34,300 as a result of the recession; over the same time period, approximately 26,400 lost their jobs as a result of increases in the minimum wage across the 50 states and at the federal level.
In other words, raising the minimum wage essentially created a second recession for these black young adults."
MP: In other words, demand curves for unskilled labor really do slope downward, as economic theory predicts.
Post Title
→The Second Recession for Teenagers from Raising the Minimum Wage, Especially Black Teenagers
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→https://manufacturing-holdings.blogspot.com/2011/07/second-recession-for-teenagers-from.html
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