"So I think it actually hurts the economy to artificially set a minimum wage price".
What do minimum wages, price controls, and restrictions on international trade in goods, labor, and capital have in common?
There are many possible factors that could affect prices over such a long period of time, and so this paper finds no evidence of a relationship between the minimum wage and prices based on short term results.
There's evidence that raising the minimum wage raises prices, Aaronson says.
How much would a higher minimum wage cause prices to rise?
These fees – of up to £1,200, even if you're on the minimum wage – are pricing out thousands each month from pursuing cases.
Small businesses, especially farmers, feared that having to pay their workers the minimum wage would price their products out of the market.
Furthermore, by fixing the wage paid under this ELR program at a level that does not disrupt existing labor markets, i.e., a wage level close to the existing minimum wage, substantive price stability can be expected.
And businesses can absorb the slight increase in their payrolls by slightly increasing the price of their products, which leads to the opposition's next scare tactic -- if you raise the minimum wage, the price of a hamburger would increase to $20, a claim made recently by Oklahoma Republican Congressman Markwayne Mullin.
This is shown graphically in the figure below, where minimum wages shift prices up but quantity demanded does not change.
