A study on Seattle’s minimum wage hike shows $100M a year in lost payroll for low earners

Published on October 6, 2017

Business Insider’s executive editor Sara Silverstein discusses a new study from the University of Washington that analyzes the recent minimum wage increase in Seattle. The city of Seattle commissioned the study and gave researchers access to employment data. The study showed that the second increase in the minimum wage from $11/hour to as much as $13/hour had a negative impact on the total payroll to low-wage workers. This study shows different results than one published by Berkeley a few days earlier which concluded that the minimum wage increase achieved its goal by increasing wages in food service jobs. The Berkeley study results and methodology are similar to other studies done in the past. But the study out of the University of Washington is unique in its method and its access to data. It shows a different perspective that must be considered since we still don’t have a clear understanding of the impact of raising the minimum wage.

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