Minimum wages and employment In Illinois

June 1, 2009

Minimum wages and employment In Illinois

Whether minimum-wage policies are more or less effective than other policies to support families’ incomes has been the subject of debate for several decades. Advantages of the minimum wage are its philosophical appeal and its relative simplicity of implementation. In addition, there is no explicit and readily available accounting of the cost of the minimum wage. For instance, politicians do not have to raise revenue to fund it. While the potential downside of the minimum wage is higher employer costs, higher prices to consumers, and lower employment, these potential burdens are obscured because they are diffused among employers, consumers, and workers. This Policy Forum presents evidence about the effect of Illinois’ recent series of minimum-wage hikes on downstate fast-food employment.


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