Tuesday, October 3, 2023
Hawai'i Free Press

Current Articles | Archives

Monday, August 8, 2022
It's too late for now for Hawaii, but evidence against minimum-wage hikes keeps piling up
By Grassroot Institute @ 4:57 PM :: 1509 Views :: Labor, Small Business

It's too late for now for Hawaii, but evidence against minimum-wage hikes keeps piling up

from Grassroot Institute, August, 2022

The issue will inevitably come around again, and next time let's hope our legislators do what is empirically, not politically, correct

Hawaii lawmakers approved a bill earlier this year that will nearly double the state’s legal minimum wage over the next six years, from $10.10 to $18 an hour — despite overwhelming evidence against such a move.

And that evidence keeps piling up. 

Just last month, the National Bureau of Economic Research published a paper by researchers from the University of Minnesota and the Federal Reserve Bank of Minneapolis, “Minimum Wages and Labor Markets in the Twin Cities,” that evaluated the effects of minimum-wage increases in the cities of Minneapolis and Saint Paul. 

The researchers — Loukas Karabarbounis, Jeremy Lise and Anusha Nath — found that  “establishments with larger exposure to the minimum wage experienced larger increases in their wage and larger declines in their jobs, hours and wage bill [than those with less exposure],” while “workers who are more exposed to the minimum wage experience significantly larger employment and earnings losses [than those with less exposure].”

Also last month, NBER published the findings of researchers from Stanford University, the University of Chicago and the University of Pennyslvania that looked at the issue from both short-run and long-run perspectives.

In their paper, “The Distributional Impact of the Minimum Wage in the Short and Long Run,” Erik Hurst, Patrick J. Kehoe, Elena Pastorino and Thomas Winberry said their “main message” was that “a permanent increase in the minimum wage to $15 has beneficial effects for low-earning workers in the short run but detrimental effects for them in the long run.” 

In the short run, they said, “even a sizable increase in the minimum wage induces only a small adjustment in the employment of workers who initially earn less than the new minimum wage. Hence, an increase in the minimum wage leads to an increase in labor income and welfare for such workers." 

Over time, though, they continued, "as firms reorganize their production in response to the higher minimum, they start substituting away from these workers on whom the minimum wage binds and towards those on whom it does not.”

Unfortunately, it’s too late now for Hawaii’s lawmakers to undo what they did in the 2022 legislative session. But if they really want to support those in poverty in the future, they will resist further interfering with the state’s delicate labor market other than to remove the regulatory barriers that make new and unskilled workers less employable.


TEXT "follow HawaiiFreePress" to 40404

Register to Vote


808 Silent Majority

Aloha Pregnancy Care Center


Antonio Gramsci Reading List

A Place for Women in Waipio

Back da Blue Hawaii

Ballotpedia Hawaii

Broken Trust

Build More Hawaiian Homes Working Group

Christian Homeschoolers of Hawaii

Cliff Slater's Second Opinion

DVids Hawaii


Fix Oahu!

Frontline: The Fixers

Genetic Literacy Project

Grassroot Institute


Hawaii Aquarium Fish Report

Hawaii Aviation Preservation Society

Hawaii Catholic TV

Hawaii Christian Coalition

Hawaii Cigar Association

Hawaii ConCon Info

Hawaii Debt Clock

Hawaii Defense Foundation

Hawaii Family Forum

Hawaii Farmers and Ranchers United

Hawaii Farmer's Daughter

Hawaii Federalist Society

Hawaii Federation of Republican Women

Hawaii History Blog

Hawaii Homeschool Association

Hawaii Jihadi Trial

Hawaii Legal News

Hawaii Legal Short-Term Rental Alliance

Hawaii Matters

Hawaii's Partnership for Appropriate & Compassionate Care

Hawaii Public Charter School Network

Hawaii Rifle Association

Hawaii Shippers Council

Hawaii Smokers Alliance

Hawaii State Data Lab

Hawaii Together



Hiram Fong Papers

Homeschool Legal Defense Hawaii

Honolulu Moms for Liberty

Honolulu Navy League

Honolulu Traffic

House Minority Blog

Imua TMT

Inouye-Kwock, NYT 1992

Inside the Nature Conservancy

Inverse Condemnation

Investigative Project on Terrorism

July 4 in Hawaii

Kakaako Cares

Keep Hawaii's Heroes

Land and Power in Hawaii

Legislative Committee Analysis Tool

Lessons in Firearm Education

Lingle Years

Malulani Foundation

Managed Care Matters -- Hawaii

Malama Pregnancy Center of Maui


Military Home Educators' Network Oahu

Missile Defense Advocacy

MIS Veterans Hawaii

NAMI Hawaii


National Christian Foundation Hawaii

National Parents Org Hawaii

NFIB Hawaii News

No GMO Means No Aloha

Not Dead Yet, Hawaii

NRA-ILA Hawaii

Oahu Alternative Transport


OHA Lies

Opt Out Today


Patients Rights Council Hawaii

PEACE Hawaii

People vs Machine

Practical Policy Institute of Hawaii

Pritchett Cartoons

Pro-GMO Hawaii



Rental by Owner Awareness Assn

ReRoute the Rail

Research Institute for Hawaii USA

Rick Hamada Show

RJ Rummel

Robotics Organizing Committee

School Choice in Hawaii


Sink the Jones Act

Statehood for Guam

Talking Tax

Tax Foundation of Hawaii

The Real Hanabusa

Time Out Honolulu

Trustee Akina KWO Columns

UCC Truths

US Tax Foundation Hawaii Info

VAREP Honolulu


West Maui Taxpayers Association

What Natalie Thinks

Whole Life Hawaii