There are a lot of factors to consider when discussing minimum wage. While a major focus has been on whether or not employers would need to cut down on staff or new hires, there’s also the question of whether or not businesses can survive financially when service costs need to be increased. This past weekend, the nation’s leading academic economists gathered for the American Economic Association, where they continued to speak about the possible ramifications/outcomes of minimum wage.
Proponents of the increase argue that it’s a practical way to improve living standard, while opponents are concerned about the health of businesses if and when they have to allot more money for wages rather than operations. Though many tests and experiment have been conducted, findings are never black and white, with many areas still up for debate and speculation.
One of the most recent studies conducted by John Horton of New York University concluded that wage increases could result in employers hiring more productive workers in order to keep hours shorter, with the less productive workers potentially losing out on a job.