Wonky Wages
06/30/2014 | | econ70, Economic forecasting, economist on radio, economist on TV, eisenberg and economics, Eisenberg and housing economics, Eisenberg and public speaking, Elliot eisenberg, funniest economist, funny housing economist, Graphsandlaughs, graphsandlaughs and eisenberg, housing sales, Minimum Wages, MLS, mortgage banking, Multiple listing service, politics and economics, Public speaking economist, Seattle, Seattle minimum wage, www.econ70.com
Seattle’s decision to boost its minimum wage to $15/hour, the highest anywhere, is bad policy. Unlike a rise in the federal minimum wage which affects all employers, this increase only applies inside the city. Thus, employers in low-wage industries in Seattle will be at a distinct financial disadvantage compared to similar firms outside Seattle. This price differential will cause some shoppers who used to shop inside Seattle to shop outside.