The Ripple Effect of the Propsed Minimum Wage Increase Krumm, Ronald and Chao, Li-Wei

In 1989, the 101st Congress was poised to pass legislation that would raise the current minimum wage from $3.35 to $4.65 an hour by 1992. The authors of The Ripple Effect of the Proposed Minimum Wage Increase examined the impact that such a raise would have on the American economy. Among their findings were that it will result in a sizeable degree of disemployment, as jobs are lost resulting from a 2.11 percent cumulative rise in the United States labor costs.