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A San Diego city minimum wage? Boon or boondoggle?

EconoMeter panel weighs the proposal from interim mayor

Roger Showley, U-T SAN DIEGO

Friday, January 24, 2014

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Kelly Cunningham, National University System

Answer: NO

The vast majority of economic research over the past two decades confirms raising minimum wages eliminates jobs for low-skill and entry-level employees. Only 2.1 percent of hourly employees earn the minimum wage and of those, 55 percent are 16-24 years old. Increasing small business labor costs and creating more barriers to entry-level employment denies opportunities for those most in need of gaining experience and skills. Raising employment costs also further incentivizes development of automation processes to replace workers with machinery. The real objective for proponents of raising the minimum wage is elimination of low-skilled competition while demanding higher wages for themselves.