Minimum wage hikes not so good for black and Hispanic employment

A week ago, the Daily Wire published an article showing how Minnesota hiking its minimum wage from $6.15 to $8.00 an hour in 2014 put a damper on the growth of limited service restaurants.  Data from Minnesota's Department of Employment and Economic Development provide evidence that this policy disproportionately affected blacks and Hispanics (Figs 1 & 2). Fig. 1. Fig. 2. From 2014 to 2015, the gap between black and white unemployment in the North Star State jumped from about 6% to 11.2% (Fig. 1).  Black unemployment in Minnesota increased by more than a third because people of color disproportionately rely on the minimum-wage jobs often provided by limited service restaurants.  White unemployment was not significantly affected, but what about other minorities?  If Hispanics also compete for these jobs, why did their unemployment decline when so many black Americans were losing their jobs (Fig. 2)? According to Foreign...(Read Full Post)

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