With close to two decades worth of research to back up their claims, a group of economists and government officials insist that an increase in the minimum wage would help the economy.
Aside from improving the economy, it would also raise the standard of living of low-wage earners.
“The labor market absorbs the minimum wage,” said Michael Reich, an economics professor and director of the Institute for Research on Labor and Employment at the University of California, Berkeley. “Turnover goes way down when there’s a minimum-wage increase. Employees — when they stay longer, they’ll be more experienced and more productive. And the employers will have lower turnover costs.”