Unions in California are busy playing politics this season. In addition to labor’s push against paycheck protection, the AFL-CIO has been particularly outspoken in supporting—and funding–a San Jose referendum that would increase the city’s minimum wage to $10 per hour. (The campaign even appears to be headquartered at the offices of the AFL-CIO’s South Bay Labor Council.)
Proponents claim that it improves the lives of low wage employees. But a new report from University of Kentucky economist Aaron Yelowitz explains what has happened in San Francisco since the city voted for a similar proposal in 2003: Teen unemployment has risen, and their hours worked have fallen. It’s not a surprising result, given that 85 percent of the most credible economic studies on the subject find that job loss does occur after a wage hike.
Of course, EcPI and labor unions will continue to perpetuate the myths of wage floors beyond November 6. Be sure to check MinimumWage.com for a fact-based response to all of them.