Summary of EPI (2010/1-2010/12)
EPI：U.S. employment policy institute
In the year of 2010, EPI has updated five essays, which are all related to minimum wage. A common understanding is that increase in minimum wage has a harmful impact on the employment.
Dr. Joseph J. Sabia find that each 10 percent increase in a state’s minimum wage decreased employment for the group by 3.6 percent, which is associated with a 2 to 4 percent decline in state GDP generated by these lower-skilled industries.
Nicole Coomer and Walter Wessels prove it to be worse,pointing out that when the minimum wage is increased by 10 percent, employment for 16-to-19-year-olds in minimum wage jobs falls by as much as 11.1 percent. Looking specifically at 16-to-17-year-olds, employment losses rise to 13 percent.
According to the Census Bureau employment data(2005-2010), William E. Even and David A. Macpherson see approximately 98,000 fewer employed teens in the 19 states affected by all three stages of the federal wage hike.The number rises to 114,400 concerning all the 32 states.
William C. Wood gives a reasonable explanation.For these less-educated Americans, the workplace can function as a second classroom—a chance to gain valuable experience needed to move up in the workforce. But instead of making potential employees more attractive to employers, the increase in minimum wage unintentionally makes less-skilled employees more expensive to hire.Wood’s research demonstrates that these policies can actually be a barrier to work if an individual’s skill set can’t justify the higher pay.
John P. Formby , John A. Bishop and Hoseong Kim determine that two policy alternatives to the FMWA—an expansion of the Earned Income Tax Credit (EITC) and an increased rebate of the Federal Insurance Contributions Act (FICA) tax—would each be a more effective and less costly means to assist needy families. |
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