Letter to the Editor | Consequences of wage increases

Letter to the Editor | Consequences of wage increases

A recent study from the Illinois Economic Policy Institute claims that by raising the state's minimum wage to $15 an hour, millions of workers would benefit with little negative effects on businesses and employment rates.

However, the institute's results are driven by a flawed methodology that downplays the consequences of wage increases.

ILEPI's findings are also refuted by more credible studies — the vast majority of which show that job loss is associated with a higher minimum wage, according to a review from the Federal Reserve Bank of San Francisco.

In fact, research shows that more extreme wage mandates have led to more negative consequences. Researchers with Harvard University and Mathematica Policy Research have shown that each dollar increase in the minimum wage in the Bay Area led to a 14 percent increase in closures for restaurants with an average rating of 3.5 stars.

If a $15 minimum wage is too radical for a county with one of the highest-earning cities, it's certainly too extreme for the entire state of Illinois.

SAMANTHA SUMMER

communications director

Employment Policies Institute

Washington, D.C.

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