Las Vegas Review-Journal

They said Seattle’s minimum wage would cost workers; so did it?

- By Noam Scheiber New York Times News Service

A research team including economists from the University of Washington has put out a paper showing that Seattle’s recent minimum-wage increases brought benefits to many workers employed at the time, while leaving few employed workers worse off.on their own, these results appear unremarkab­le. Large stacks of academic papers have shown that, for the average worker, a minimum-wage increase does more good in raising pay than it hurts by prompting some employers to cut back on hiring or hours.

But this new paper has a unique pedigree: Last summer, the same authors released a paper showing that Seattle’s minimum-wage increases had large costs for workers. Because employers reduced hours in response to the city’s rising minimum wage in 2016, the researcher­s found, average pay fell by an eye-popping $125 a month, or about 6.6 percent. (They did not observe such effects for a minimum-wage increase the year before.)

The earlier paper created an immediate political sensation, not least because the researcher­s had access to highly detailed data on worker wages and hours — the kind of informatio­n generally not available to the authors of other studies.

Conservati­ve politician­s and news outlets quickly hailed the findings. “So often, liberal policies, born of good intentions to ‘help the poor,’ end up hurting them,” Sen. Ted Cruz, R-texas, said on Twitter.

Liberals, for their part, gnashed their teeth over the result, pointing out a variety of methodolog­ical flaws that could have skewed it.

In light of the new paper, do commentato­rs on both sides suddenly have to reassess?

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