Unequal Harm

Racial Disparities in the Employment Consequences of Minimum  Wage Increases

Employment Institute ( William E. Even- Miami University, David A. McPherson- Trinity University)

May 2011

These staggering racial disparities in employment among young adults are nothing new. They’ve existed as far back as the early 1950’s when the federal government first started tracking these figures.

Among white males in this group, the authors find that each 10 percent increase in federal or state minimum wage decreased employment by 2.5 percent; for Hispanic males, the figure is 1.2 percent. But among black males in this group, each 10 percent increase in the minimum wage decreased employment by 6.5 percent.

Across all 50 states and the District of Columbia, approximately 34,300 black young adults lost their job due to the recession; during the same period 26, 400 lost their job due to minimum wage increases that occurred.

The authors find that they’re more likely to be employed in eating and drinking places, nearly one out of three black young adults without a high school diploma works in the industry.

Minimum wage increases remain politically popular, which means they’ll continue to be debated at the state and federal level for years. But the debate on the employment consequences of the minimum wage has been settled conclusively, and this research proves that those consequences are felt most by young black males.

#Loray Muhammad, author
#Black Integration a Failed Social Experiment