Low-Skilled Workers Flee the Minimum Wage

Monras’s statistical model predicted that if labor demand is sensitive to wage changes, low-skilled workers should leave states that increase their minimum wages — and that’s exactly what his empirical evidence shows.

According to Monras,

A 1 percent reduction in the share of employed low-skilled workers [following a minimum wage increase] reduces the share of low-skilled population by between .5 and .8 percent. It is worth emphasizing that this is a surprising and remarkable result: workers for whom the [minimum wage] policy was designed leave the states where the policy is implemented.

Article here:  http://fee.org/freeman/low-skilled-workers-flee-the-minimum-wage/?mkt_tok=3RkMMJWWfF9wsRokuqTAZKXonjHpfsX87espW6Wg38431UFwdcjKPmjr1YIISsV0aPyQAgobGp5I5FEBS7TYRKtst6cMUw%3D%3D