How would a proposed minimum wage increase affect Maryland’s economy? – Washington Post

 

http://www.washingtonpost.com/business/capitalbusiness/how-would-a-proposed-minimum-wage-increase-effect-marylands-economy/2013/01/25/f26b9aba-6657-11e2-85f5-a8a9228e55e7_story.html

Sarah Halzack

Maryland lawmakers have proposed to incrementally raise the state’s minimum wage to $10 per hour from $7.25 by 2015, a measure debated for whether the move would help or hinder the state’s economy. Research by Michael Reich, director of Berkeley’s Institute for Research on Labor and Employment, suggests the increase would neither create a drag on job growth, nor would it boost it. A study he conducted found that a minimum wage hike had no net effect on job growth in the region. On the other hand, he did find that a minimum wage hike reduced employee turnover, in turn cutting companies’ recruitment and training costs.

 

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