Employment fell because of the Great Recession, not the minimum wage: Study claiming the minimum wage harmed low-wage workers fails conventional tests | Economic Policy Institute


The analysis in this report supports the hypothesis that the federal minimum wage increase from $5.15 in 2007–to $7.25 in 2009 did little to affect employment levels. Industrial and geographic factors account for the employment differences between states with and without significant minimum wage increases, so these employment differences were correlated with but not caused by the minimum wage. Once the appropriate controls are included, employment differences between unbound and bound states are generally small and statistically insignificant.