Interesting numbers comparing minimum wage and unemployment

Discussion in 'Politics' started by Quantum Windbag, Oct 5, 2011.

  1. Quantum Windbag
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    Quantum Windbag Gold Member

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    8 states with the highest minimum wage

    8. California (unemployment 12.1 percent; minimum wage $8.00)
    7. Massachusetts (unemployment 7.4 percent; minimum wage $8.00)
    6. Vermont (unemployment 5.9 percent; minimum wage $8.15)
    5. Connecticut (unemployment 9.0 percent; minimum wage $8.25)
    4. Illinois (unemployment 9.9 percent; minimum wage $8.25)
    3. Nevada (unemployment 13.4 percent; minimum wage $8.25)
    2. Oregon (unemployment 9.6 percent; minimum wage $8.50)
    1. Washington (unemployment 9.3 percent; minimum wage $8.67)

    The Eight States With The Highest Minimum Wages - 24/7 Wall St.
     
  2. 8537
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    8537 Senior Member

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    In other words, there's no relation. California, Nevada, Washington, Illinois and Oregon have high minimum wages and above average UE.

    Mass, VT and Conn have high minimum wages and UE below the average.

    On a related note, California, Mass and Connecticut are among the wealthiest.
     
    Last edited: Oct 5, 2011
  3. rdean
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    rdean rddean

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    The Republican Plan for America:

    Prosperity through lower wages.
     
  4. uscitizen
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    uscitizen Senior Member

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    Ok lets see another chart of states with the highest unemployment and their minimum wage.
    KY minimum wage 7.25 unemp rate 9.5%
    FL minimum wage 7.31 unemp rate 10.9%.
    AL minimum wage 7.25 unemp rate 9.9%
     
    Last edited: Oct 5, 2011
  5. ladyliberal
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    ladyliberal Progressive Princess

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    The WSJ article seems to be comparing minimum wage to unionization and median income (the latter being a decent stand-in for cost of living). They seem to reach the common-sense conclusion that minimum wage is positively correlated with both.

    The first post seems to suggest, but does not say, that minimum wage increases unemployment. This is again plausible, but doesn't seem to be demonstrated by the evidence here. There's no adjustment for cost of living, and there's no attempt to disentangle causation from correlation (poor economic times could lead, as the WSJ suggests, to increases in both minimum wage and unemployment, creating a correlation).

    The question is a difficult one, and while the simple textbook model certainly suggests that minimum wages increase unemployment among the marginally employable, significant disagreements exist among economists: Minimum wage - Wikipedia, the free encyclopedia
     
  6. uscitizen
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    uscitizen Senior Member

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    The high unemployment in NV is clearly the result of a state that relies too heavially on good economic times tourists spending/losing lots of money there. Which drops dramatically in poor economic times.
    it had nothing at all to do with the minimum wage.
     
  7. NYcarbineer
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    NYcarbineer Diamond Member

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    What's interesting, exactly, other than it disproves any nonsense about the minimum wage adversely affecting UE?
     
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  8. waltky
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    waltky Wise ol' monkey Supporting Member

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    Miss Nancy caught fibbin' again...
    :lol:
    Pelosi: Without Obama's Stimulus, Unemployment Would Now Be 15%
    November 3, 2011 – Since President Barack Obama signed his $825 billion economic stimulus plan into law in February 2009, the national unemployment rate has risen from 8.2 percent to 9.0 percent. But House Minority Leader Nancy Pelosi (D.-Calif.) said at her press briefing Thursday that if the stimulus had not been enacted the unemployment rate would now be 15 percent.
    See also:

    BLS Chief Contradicts Pelosi: Knows of No Study Backing Her 15% Unemployment Claim
    November 4, 2011 - Keith Hall, the commissioner of the Bureau of Labor Statistics, the federal agency responsible for tracking unemployment in the United States, told the Join Economic Committee of Congress today that he knew of no study that would back the claim that House Miniority Leader Nancy Pelosi (D.-Calif.) made on Thursday that the unemployment rate would now be 15 percent were it not for the economic stimulus President Barack Obama signed in 2009.
     

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