Saturday, June 14, 2014

Regulation

Claim that 25 percent increase in minimum wage did not hurt job growth in San Jose. I'm skeptical because there's no way to tell what job growth would have been without it. Also, this USA Today. The Wall Street Journal concurs, so circumstance in San Jose, full of high income, Silicon Valley workers, may make it resistant to job losses from increased minimum wages. From the USA Today article:
"Nestled in Silicon Valley, San Jose is one of the nation's most prosperous cities, possibly making it easier for businesses to raise prices without suffering a drop-off in sales, says Michael Reich, the University of California-Berkeley economics professor who has been studying the effects of San Jose's higher minimum wage. Still, Reich says job growth in the city has fared well compared with similar nearby communities that did not raise their minimum wages."
It almost certainly would have been better without it because of the giant tech bubble. From the Wall Street Journal article:
"Those local findings stand in contrast to a recent study by the nonpartisan Congressional Budget Office. In a February report, the CBO estimated raising the federal minimum wage to $10.10 an hour from $7.25 would reduce U.S. employment by 500,000 while pulling 900,000 people out of poverty."
This sounds more like it.

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