As the U.S. labor world digests the news of the passage of measures in six states (and two cities in California) that have elevated the minimum wage, workers and their families probably are wondering just how high the minimum wage might climb in various states and across the U.S.
On the one hand, when wages are too low, that’s obviously problematic. As we discussed in our recent analysis comparing the lives of fast-food workers in Denmark with fast-food workers here in the United States, when you can’t make enough to pay rent, cover your medical bills, and feed your family — and you’re constantly at risk of losing your job or being made redundant — you suffer, your family suffers, and the community around you suffers.
But critics of minimum wage increases counter that raising the minimum wage too high can disincentivize employers from hiring and instead push them to outsource or automate. In aggregate, this process could increase unemployment rates and ultimately torpedo the economy.