At the local and state levels these minimum wage requirements are particularly destructive, because many businesses in low-wage industries can simply hop over state borders to less regulated climates. New Jersey raised its minimum wage in the 1990s and suffered a 4.6% loss in jobs in the fast food industry, according to a study by economist David Neumark.
LOL! Let the corpulent senior Senator from Massachusetts please testify when HIS office started paying minimum wage.
:-D
What jackassery!
But would do wonders to lower the unemployment rate for ILLEGAL INVADERS.
The effective entry wage in many urban and suburban areas is already around $7 per hour, so raising it won't really hurt much of anything. The department stores and fast food joints in my area are all starting hiring at $7 - $8 per hour.
What really hurts teens these days are: 1) illegal immigration and 2) the fact that labor laws and liability rulings have created a hostile environment for employing teens younger than age 16, and even possibly younger than age 18.
Add to all this that teens cannot drive by themselves often until they are 16.5 or 17yo (at least in the NE), and you have a situation where teens are just not as employable as ... illegals.
No mention of illegal immigration? Why would WSJ want open borders and to lower the cost of labor? Because it cares for American teenagers and poor Mexicans? Or maybe there is some inferior motive?</p>
I am embarrassed to say I work in one of those states and live in another.
The article states that teenage unemployment remains "stubbornly high" yet the WSJournal doesn't bother to compare it to previous years when teen unemployment averaged about 17.5 in 2004, 17.0 in 2003, 15.8 in 2002 and 15.8 in 2001. Its an annual thing, and probably has as much to do with those who don't want to work, as those who do.
Good article. Some more graphs/charts showing what Fund is talking about:
http://www.neoperspectives.com/minimumwage.htm
Inflation gets a liberal boost.