Why minimum wage hikes may not reduce employment. From: Economic Review (Atlanta, Ga.) | Date: March 1, 1998| Author: Zavodny, Madeline | COPYRIGHT 1998 Federal Reserve Bank of Atlanta. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group.Copyright information

Economists have traditionally agreed that increases in the minimum wage have adverse effects on employment, particularly among young and unskilled workers.(1) Several studies have challenged this conventional wisdom, however, finding that minimum wage increases do not appear to lower employment among teens and retail workers. These studies have influenced the debate on whether to raise the minimum wage; President Clinton, for example, stated in 1996 that "studies show that a moder...

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