Saturday, February 16, 2013

de Rugy: Raising the Minimum Wage: "it is very hard to see the negative effects"

http://www.nationalreview.com/corner/340644/raising-minimum-wage-tired-bad-proposal-veronique-de-rugy



While there is continuing debate about some of the effects of minimum-wage policies, the evidence seems to point to its long-term negative consequences. However, politicians, always on the lookout for policies that have visible positive effects on selected interest groups, often at the expense of less visible ones, tend to disregard this evidence. After all, when you raise the minimum wage, you can point to someone whose salary just got a boost, while it is very hard to see the negative effects the policy had on the worker who couldn’t get a job because of the policy or the teen who dropped out of school to get a job attracted by higher wages rather than investing in his or her education, the true source of wage growth.

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