Louisiana Minimum Wage Remains Where It Is: $7.25
Louisiana senators on Tuesday voted in opposition to raise the state's minimum wage from $7.25 to a proposed $8.50. With 29 states having raised their minimum wages this year, and many cities pushing higher minimums than their respective states', economists will get some interesting (and hopefully insightful) data over the next few years. It's looking like we may soon have differences of 100% or more among different state minimums.
Analysts are certainly paying close attention to these developments, as states like Washington, California, and New York are effectively becoming the guinea pigs for experiments in minimum wage hikes. Accordingly, research is becoming more nuanced in efforts to observe the precise impacts of minimum wage on employment statistics, particularly for low-wage jobs.
One study made headlines last year with data from the wake of Seattle's recent hikes, increases which have been more aggressive than any other municipality in its urgency towards a $15.00 target. The paper claimed evidence that due to responses to the increases by employers, Seattle employees at the bottom of the wage distribution have actually suffered a decrease in net income.
Some have argued that the Seattle study is too narrow to be representative, as it studies the most aggressive hikes in the nation. It should certainly prove to be useful for that purpose however, as it can help to quantify the upper limit of beneficial raises. However, it's still early to draw very strong conclusions from the data. One can imagine how cutting payroll may not prove to be sustainable for businesses, which may in the long-term prompt them to find other solutions to the challenges presented by higher wage mandates.
Other recent studies of more widespread effects on low-wage work have reported more hopeful evidence. Nothing is conclusive at this point; more studies are needed. Hopefully within the next 5 years we will have enough precise data to see particular trends that can reliably inform policy positions.
Analysts are certainly paying close attention to these developments, as states like Washington, California, and New York are effectively becoming the guinea pigs for experiments in minimum wage hikes. Accordingly, research is becoming more nuanced in efforts to observe the precise impacts of minimum wage on employment statistics, particularly for low-wage jobs.
One study made headlines last year with data from the wake of Seattle's recent hikes, increases which have been more aggressive than any other municipality in its urgency towards a $15.00 target. The paper claimed evidence that due to responses to the increases by employers, Seattle employees at the bottom of the wage distribution have actually suffered a decrease in net income.
Some have argued that the Seattle study is too narrow to be representative, as it studies the most aggressive hikes in the nation. It should certainly prove to be useful for that purpose however, as it can help to quantify the upper limit of beneficial raises. However, it's still early to draw very strong conclusions from the data. One can imagine how cutting payroll may not prove to be sustainable for businesses, which may in the long-term prompt them to find other solutions to the challenges presented by higher wage mandates.
Other recent studies of more widespread effects on low-wage work have reported more hopeful evidence. Nothing is conclusive at this point; more studies are needed. Hopefully within the next 5 years we will have enough precise data to see particular trends that can reliably inform policy positions.
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