Will a $15 Federal Minimum Wage Really Help Low-Income Workers?
Last week, Democrats announced an economic plan that Sen. Chuck Schumer (D-N.Y.) referred to as "a better deal for American workers." The proposal included a number of provisions, including calls to provide family and sick leave, cut prescription drug prices, and offer worker training. Also included was a call to raise the national minimum wage to $15 per hour, which has been proposed in the past. The intent is to give all workers a high enough wage to meet basic living costs.
The minimum-wage debate has been contentious for years, but thanks to the efforts of the Pacific Northwest's biggest city, there's empirical data on the impact of having a $15 hourly minimum wage on workers and businesses. A recent working paper released by the National Bureau of Economic Research looked at what's happened in Seattle since it passed a law gradually pushing the city's minimum wage to $15 per hour, and the results were troubling for those who think higher minimum wages automatically mean better results for workers. Yet some have called into question the assumptions and methodology the researchers from the University of Washington used, citing other evidence that shows the success of higher minimum wages in other cities.
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