An economist writes that an increase in the minimum wage won’t cost jobs to those laboring at minimum wage levels.
But though economists still maintain that the axiom is true, it may not be entirely relevant in today’s economy. There are good reasons to believe that it would take a very large rise in the current minimum wage to exact a significant toll on jobs. Raising the floor on pay to $7.25 an hour from $5.15, as Congress is considering, is unlikely to do much damage. Still, American history offers many examples of how raising the wages of low-paid workers will provide a powerful incentive for employers to eliminate their jobs.
A careful reading of the entire article shows that though it may not cause a loss in employment (which is still arguable, in my view) such an increase is not without consequences to us all and especially to those who labor at minimum wage rates.