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In Seattle the growth of the minimum hourly rate has led to a decline in earnings

In Seattle the growth of the minimum hourly rate has led to a decline in earnings

August 6, 2017 at 11:32, views: 915

In Seattle (WA) the minimum hourly rate now is $13, and city officials plan to gradually raise it to $15. It would seem, what could be better? However, the authors of a new study by researchers at the University of Washington argue that the increase in the minimum hourly rate maybe how paradoxical it sounds, ultimately, to reduce the incomes of low-paid workers. Although hourly earnings actually increases, but employers in response to this, reduce hiring and reduce work hours. By calculations of authors of the report, the increase in minimum hourly rate turned out low-wage workers a loss of $125 a month. In the period from 2014 to 2016 year the number of working hours decreased by 9%, and the number of potentially employed low-wage workers declined by approximately 5000. Critics of raising the minimum hourly rate see the results of this study confirm his fears. However, some experts note that research methodology is not considered a factor in a strong economy, Seattle, forcing employers to raise wages for their employees. And if the number of hours of work of low-wage workers can actually decrease, it kompensiruet increase in work hours for those who receive a higher rate.

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