What are we actually looking for in the minimum wage

For the first time in a decades long debate, America now has the economic data to evaluate the consequences of a citywide raise in the minimum wage. In 2014, The City of Seattle gradually raised the minimum wage to $15 per hour, reaching approximately $13 an hour in 2016 (raised from $9.47 per hour). Previous research was centered around restaurant workers, as well as niche markets of small businesses, small retail businesses as well as public employees, based on survey methods. A survey-based method of study opens the door to errors based on bias. When asking about the human experience, it’s hard to find out what’s a fact and what’s an exaggeration. The most recent study conducted by the University of Washington is not based on a survey model; rather, it uses state records on low-wage employment, as well as state unemployment records.
Many have probably heard about the study, or at least many interpretations of it, in that overall hours declined and some jobs were lost, which is true about the study. However, a deeper dive into the study presents us with a hazier picture of what we mean by job loss and loss in hours, as well unanswered questions about what the goal is in raising a minimum wage.
In order to figure out if there is a loss in jobs or hours, the researchers at UW needed something to compare Seattle to, that accounted for seasonal work and market pressures that naturally force jobs to be born or become reduced. To do this, the researchers constructed what they call a “synthetic” Seattle, which is comprised of much of the country’s largest and most prosperous cities. This is important to know because we need to be aware that we are comparing loss of jobs and hours, to that of a city that doesn’t actually exist.
Due to shortness of space, I will continue this evaluation of the study next week, but invite those reading this to check out the study ahead of time.