When Minneapolis raised the minimum wage in 2017, it led to 28% fewer retail and restaurant jobs, a 20% drop in hours worked and a 13% decline in overall earnings. (https://www.minneapolisfed.org/-/media/assets/topics/minimum-wage/minneapolis_minimumwage_report_052023.pdf)
When St. Paul raised its minimum wage in 2018, for retail and restaurants it found a 6.6% increase in hourly wages, a 19% reduction in jobs, a 25% reduction in hours, and a 25% reduction in overall retail wages. (https://www.minneapolisfed.org/-/media/assets/topics/minimum-wage/saintpaul_minimumwage_report_052023.pdf)
To say this another way, when Minneapolis and St. Paul raised its minimum wage, low income workers had many fewer jobs, many fewer hours of work, and earned dramatically less money.
Specifically, by 2021 Q4, the increase in the minimum wage was associated with an average increase in hourly wages of 0.7 percent, an average decline in jobs of 1.7 percent, an average decline in hours worked of 1.3 percent, and an average decline in wage earnings of 1 percent.
Carol Becker contributed to this article.
I want to nominate Jason Chavez to get the Minneapolis Porky Pig award of 2024. He certainly deserves it.