A $15 an hour minimum wage won’t slash jobs in low-income areas, but it will help reduce poverty, according to a new study from the University of California, Berkeley.
The study, conducted by Anna Godoey and Michael Reich, economists at UC Berkeley’s Center on Wage and Employment Dynamics, suggests that a proposal to raise the federal minimum wage to $15 an hour by 2024 would not reduce employment rates, weekly hours worked, or annual weeks worked. The study notes that $15 an hour in 2024 is roughly equivalent to $13 an hour today.
In their paper, Godoey and Reich suggested a few reasons why minimum wage increases do not necessarily lead to a loss of low-wage jobs. These include price increases in the restaurant and