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New Study: Minimum Wage Hikes = Fewer Jobs

<p class&equals;"MsoNormal" style&equals;"text-align&colon; left&semi;" align&equals;"center">A new study from the National Bureau of Economic Research &lpar;NBER&rpar; shows the devastating impact an increase in minimum wage can have on workers&period; &nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">The report reveals that higher wage spikes in the past have only led to fewer jobs&period; Specifically&comma; this had a detrimental impact on low-skill workers&period; From 1980 to 2015&comma; an &dollar;1 an hour increase in minimum wage influenced a &period;43&percnt; decline in automatable jobs&comma; which the <em style&equals;"mso-bidi-font-style&colon; normal&semi;">MIT Technology Review<&sol;em> said that this translates to &ldquo&semi;millions of jobs across the entire U&period;S&period; economy&period;&rdquo&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">&ldquo&semi;Based on &lbrack;current population survey&rsqb; data from 1980-2015&comma; we find that increasing the minimum wage decreases significantly the share of automatable employment held by low-skilled workers&comma; and increases the likelihood that low-skilled workers in automatable jobs become unemployed&comma;&rdquo&semi;&nbsp&semi;write the report authors&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">Although the federal wage has remained at &dollar;7&period;25 since 2009&comma; 30 states now have higher minimum wage laws&period; &nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">Seattle&rsquo&semi;s minimum wage hike&comma; for example&comma; has forced businesses to cut wages and hours&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">&ldquo&semi;Using a variety of methods to analyze employment in all sectors paying below a specified real hourly rate&comma; we conclude that the second wage increase to &dollar;13 reduced hours worked in low-wage jobs by around 9 percent&comma; while hourly wages in such jobs increased by around 3 percent&comma;&rdquo&semi; writes the authors of another NBER study&period; &ldquo&semi;Consequently&comma; total payroll fell for such jobs&comma; implying that the minimum wage ordinance lowered low-wage employees&rsquo&semi; earnings by an average of &dollar;125 per month in 2016&period; Evidence attributes more modest effects to the first wage increase&period;&rdquo&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">Ultimately&comma; higher wages are pushing businesses to turn to automation technologies sooner than later&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal">Several fast food chains like Wendy&rsquo&semi;s and Panera Bread are investing in digital kiosks to take customers&rsquo&semi; orders&period; Robots are being tested to flip burgers&period; Amazon plans to offer an &ldquo&semi;employee-less&rdquo&semi; grocery store with its technology-focused Amazon Go stores&period; &nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">&ldquo&semi;Experts predict this trend will speed up over the coming years and decades&period;&nbsp&semi;According to a recent study&nbsp&semi;by consultancy firm&nbsp&semi;PricewaterhouseCoopers&comma;&nbsp&semi;40 percent of jobs in the U&period;S&period; are at a high risk of being taken over by robots by 2030&period; In the U&period;K&period;&comma; some 30 percent of jobs are vulnerable&comma; while Germany and Japan could lose 35 percent and 21 percent&comma; respectively&comma;&rdquo&semi; writes <em style&equals;"mso-bidi-font-style&colon; normal&semi;">Futurism&period;<&sol;em><&sol;p>&NewLine;<p class&equals;"MsoNormal">Opponents of minimum wage spikes argue that a forced increase in worker&rsquo&semi;s wage will only thrust companies into investing in automation quicker to replace some of its pricier employees&period; &nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">Sadly&comma; minimum wage hikes&comma; which are being put in place to improve workers&rsquo&semi; quality life&comma; only end up hurting low-wage employees&period; Not to mention&comma; minorities are often the first to be laid off&period;&nbsp&semi;<&sol;p>&NewLine;<p class&equals;"MsoNormal">One of three young African Americans works in the restaurant industry&period; &ldquo&semi;African-American teens working in that highly-competitive industry with its narrow profit margins should know that their job is on shaky ground when the minimum wage rises&comma;&rdquo&semi; wrote <em style&equals;"mso-bidi-font-style&colon; normal&semi;">BET <&sol;em>back in 2011&period;<&sol;p>&NewLine;<p class&equals;"MsoNormal"><strong>Author&rsquo&semi;s note&colon;<&sol;strong> This is just another report proving what we knew would happen all along&period; Why isn&rsquo&semi;t the media covering the negative effects on the minimum hikes more&quest; Workers need to know the truth about what they may be in support of&period; These reports may change their minds&period;<&sol;p>&NewLine;<p>&nbsp&semi;<&sol;p>&NewLine;

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