Anybody for a $9.50 “living” wage? Then we can really do some damage!
Check this for damage already done by the $8.50 “living” wage (thanks to NCPA for alerting us):
Aaron Yelowitz of the University of Kentucky found that Santa Fe’s
minimum wage had significant and negative effects on the labor market.
Even more troubling, he found that the negative effects of the wage
hike were concentrated on the least-skilled members of the economy —
the very individuals the increase was intended to help.
o The likelihood of unemployment for employees in Santa Fe
went up by 3.3 percent.
o For less-educated employees, however, the results were much
higher, with their likelihood of unemployment
increasing 8.3 percentage points.
o The usual hours of work fell by 1.0 hours for the full
sample and 3.2 hours for less-educated individuals.
o There was significant evidence to suggest the displacement
of adult employees by unmarried high school age
These are all unintended consequences that should give pause to
any claims of success of the ordinance, says Yelowitz.
Source: Aaron S. Yelowitz, “How Did the $8.50 Citywide Minimum Wage
Affect the Santa Fe Labor Market? A Comprehensive Examination,”
Employment Policies Institute, December 6, 2005.
We told you so.
Unfortunately for NM taxpayers our Guv is poised for an enormous increase in spending during the 30-day session that begins next month. Among the proposals is a big expansion of the pre-kindergarten program. Our public schools don’t work very well. Why do we think that pre-k will work? It hasn’t worked in Georgia. It won’t work in New Mexico. See Reason Foundation’s commentary on a similar proposal for California here.
Here is a great idea for New Mexico. If you don’t think eligibility requirements for various welfare programs are complex, then you should spend a little time navigating around here and here and here. Get the idea about the cumbersome system that Texas’s streamlining is attempting to reduce?
As an added benefit Texas style streamlining may give us insights into how to fix incentive problems. For more on welfare incentives look here (pp. 12-19).
With all the Wal-Mart bashing going around can you believe that the Washington Post is defending Wal-Mart?
About 8 years ago my daughter was really having difficulty making ends meet. I remember well when she said, “dad, I just don’t know what I would do without the Wal-Mart Supercenter.” Bottom line: Wal-Mart overwhelmingly helps the poor. Read all about it.
Update 11/30/05: Article is in today’s ABQ Journal. Be sure to read it.