Top Pro & Con Arguments

Con

Raising the minimum wage would disadvantage low-skilled workers.

From an employer’s perspective, people with the lowest skill levels cannot justify higher wages. [61] A study by Jeffrey Clemens, PhD, and Michael J. Wither, PhD, found that minimum wage increases result in reduced average monthly incomes for low-skilled workers ($100 less during the first year following a minimum wage increase and $50 over the next two years) due to a reduction in employment. [62] James Dorn, PhD, Senior Fellow at the Cato Institute, stated that a 10% increase in the minimum wage “leads to a 1 to 3 percent decrease in employment of low-skilled workers” in the short term, and “to a larger decrease in the long run.” [63] George Reisman, PhD, Professor Emeritus of Economics at Pepperdine University, stated that if the minimum wage is increased to $10.10, “and the jobs that presently pay $7.25 had to pay $10.10, then workers who previously would not have considered those jobs because of their ability to earn $8, $9, or $10 per hour will now consider them… The effect is to expose the workers whose skills do not exceed a level corresponding to $7.25 per hour to the competition of better educated, more-skilled workers presently able to earn wage rates ranging from just above $7.25 to just below $10.10.” [48]

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