Is Minimum Wage the Panacea or the Disease

A new report by the Bureau of Business Research at Ball State University found that the recent minimum wage increases account for 550,000 fewer part-time jobs. According to the analysis of Bureau of Labor Statistics data, most these losses are among workers between the age of 16 and 19. (HT: Americans for Tax Reform)

The minimum wage hike during a downturn had a significant impact, especially on part-time workers, because it as business could no longer afford the additional costs. As a result, jobs losses among younger workers were especially pronounced.

Federal and state governments legislate minimum wage to help the poor and unskilled. Yet, studies and consensus among economists have found that minimum wage laws have a negative effect on employment. Indeed countless studies of minimum wage laws have found that they reduce employment, primarily among the low-skill workers and disproportionately affect the young.