How the “Living” Wage Reduces Wages

You may already know that Santa Fe’s “living” wage law will put some unskilled workers out of work. That means, of couse, that their wage suddenly becomes ZERO.
But unemployed, unskilled workers will look for work where they can find it. One place they can find work is with businesses that are exempt from the “living” wage law (less than 25 employees). More potential unskilled workers looking for work at these exempt businesses will tend to drive wages in those businesses down! Read all about it (and more) in today’s fine column by Alan Reynolds.

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