Minimum Wages and Employment: A Review of Evidence from the New Minimum Wage Research
- Source type
- Article
- Published
- 6 Nov 2006
- Added by
- Wilfrid Okorie
- Added
- 6 Sept 2026
Contributor evidence
What this source establishes
This source establishes that minimum wage increases almost never have positive increases on employment, as often times, it turns out to be a reason to cut off on employment and man-power.
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The study relates directly to the claim. Clicking on the link gives a 150-page study downloadable in PDF format. It gives extensive insight on the subject and method of the study, as well as the results. The relation between this claim and this evidence piece is direct.
Supporting excerpt
Two other important conclusions emerge from our review. First, we see very few - if any - studies that provide convincing evidence of positive employment effects of minimum wages, especially from those studies that focus on the broader groups (rather than a narrow industry) for which the competitive model predicts disemployment effects. Second, the studies that focus on the least-skilled groups provide relatively overwhelming evidence of stronger disemployment effects for these groups.
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