New Economic Study Says Higher Minimum Wage May Harm Low-Income Workers

Economists David Neumark and Emma Wohl released a working paper titled "Do Minimum Wages Help Workers in Poor and Low Income Families?" through the National Bureau of Economic Research, using Survey of Income and Program Participation data spanning October 2003 to December 2016. Their analysis shows that higher minimum wages decrease the probability that low-wage workers stay employed, reduce the hours they work, and lower their overall earnings, with no evidence of benefits for the poorest families.

Social media posts from Cato Institute vice president Scott Lincicome and investor Clifford Asness have amplified the study, while the authors note that the debate over minimum-wage policy remains deeply polarized.

Neumark, who has not yet presented the paper to peers, suggests that ideological commitments on both the left and right may limit the influence of new empirical evidence. The current federal minimum wage remains at $7.25 per hour, unchanged since 2009, while many states and cities have set higher rates.