California has undergone a series of minimum wage increases over the past year. Watchdog.org examines the effects:
[C]ities can anticipate a serious uptick in the number of people looking for public assistance, said Antony Davies, a Mercatus Center–affiliated senior scholar at George Mason University and associate professor of economics at Duquesne University.
Those affected the most by minimum-wage increases are largely less educated, Davies said.
Citing a recent study he authored for the Mercatus Center, Davies said that raising the minimum wage has no effect on unemployment for college graduates.
However, the effects were more significant for those with only a high school diploma, and even tremendous among those who do not complete high school.
Because of the effect on employment among those who are less educated, the opportunity to be employed diminishes for those seeking a first job.
Wage increases “prevent them from getting that first job that enables them to get experience, and get their next job,” Davies said.
“Wages don’t set the value of the worker, they reflect it. You don’t make them more valuable, you only make them more expensive.”
Read the full report from Watchdog.org here.