“Free the Wage” Report Released by The LIBRE Institute
Today The LIBRE Institute announced the release of a new scholarly study titled Free the Wage: How the minimum wage hurts employment for Hispanics and low-skilled workers. This report uses data from the Bureau of Labor Statistics to examine the effects of the minimum wage on Hispanic employment. It considers trends in the employment-to-population ratio of certain types of Hispanic workers – such as younger or less skilled workers – as they relate to changes in the minimum wage.
The report finds:
After all but one of the seven major minimum wage hikes since 1954, teen employment growth either slowed or trended downward. Based on available data, this pattern holds true for Hispanic teen employment.
Minimum wage increases result in downward pressure on employment for younger or less educated Latino workers, and the effect of this downward pressure is magnified as the minimum wage increases.
Increases in the minimum wage are more likely to reduce employment for those with lower levels of education, and this effect is more evident with Hispanics than in the general population.
Daniel Garza, President and Chairman of The LIBRE Institute, released the following statement:
“Many politicians and policymakers are eager to vote for – and take credit for – measures that promise to ‘give workers a raise.’ But the reality is far more complex. Economists have long understood that raising the minimum wage tends to reward some employees, while others wind up losing their jobs. This important research by The LIBRE Institute makes clear that Latinos – especially young people and those with limited skills – are disproportionately likely to lose their jobs. Policymakers need to consider these unintended, and highly damaging, consequences, when they debate changes to minimum wage rules.”
CLICK HERE to read Free the Wage: How the minimum wage hurts employment for Hispanics and low-skilled workers
For interviews with a representative of The LIBRE Institute, please contact: Brian Faughnan, 703-678-4581