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That tells you just having minimum wages is not going to solve wage inequality," he said.
The analysis of the impact of minimum wages is one of the most studied areas of economics," he said.
Most analysts agree that raising minimum wages is a remarkably ineffectual policy for reducing poverty or reducing income inequality.
But the reason we have rules for overtime pay and minimum wages is that we've decided collectively that there's a role for government to play in protecting workers from exploitation.
What this means, in turn, is that the main effect of a rise in minimum wages is a rise in the incomes of hard-working but low-paid Americans — which is, of course, what we're trying to accomplish.
There is this, however: across all of these studies, our experience with higher minimum wages is that the increases don't reach far beyond the low end of the low-wage sector, and thus don't significantly affect employment.
Similar(38)
Minimum wages are rising.
The federal minimum wage is $7.25; many state minimum wages are higher.
Whatever their flaws, minimum wages are here to stay.
And minimum wages are much lower.
I think state minimum wages are fine.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com