Seven Nobel Laureates Endorse Increase in U.S. Minimum Wage

[xchrom]

http://www.bloomberg.com/news/2014-01-14/seven-noble-laureates-urge-increase-in-u-s-worker-minimum-wage.html




Seven recipients of the Nobel Prize in Economic Sciences were among 75 economists endorsing an increase in the minimum wage for U.S. workers.

In a letter released today, the group called for the hourly minimum wage to reach $10.10 by 2016 from its current $7.25, and then be indexed for inflation thereafter. They said “the weight” of economic research shows higher pay doesn’t lead to fewer jobs.

Past increases in hourly pay have had “little or no negative effect on the employment of minimum wage workers, even during times of weakness in the labor market,” the economists wrote. “A minimum wage increase could have a small stimulative effect on the economy as low-wage workers spend their additional earnings.”

Nobel Prize winners Kenneth Arrow, Peter Diamond, Eric Maskin, Thomas Schelling, Robert Solow, Michael Spence and Joseph Stiglitz were among signatories of the letter.

[pampango]

1. "While President Barack Obama has endorsed an increase in the wage, a legislative push to raise the

level is stalled in Congress. Twenty-one states and Washington, D.C. have minimum wages that are higher than the federal floor.

According to a Dec. 12-15 ABC News/Washington Post poll, 66 percent of Americans say the minimum wage should be raised to help low-income workers get by. That compares with 31 percent of those who oppose an increase, which they say could lead some businesses to cut jobs."

Nice find, xchrom. Thanks for the post.

[marmar]

2. k/r