Warning on minimum wage
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.A minimum wage would "significantly reduce" employment, the Government is warned today, in a series of articles by economists. The articles, published in the journal of the Institute of Economic Affairs, point to evidence in other countries.
Professor Walter Oi, an American labour economist, writes: "A policy that can raise the wages of those at the bottom of the wage ladder with no job losses is remarkable. It rivals a perpetual motion machine or alchemy," he said.
The professor argued that fringe benefits, such as training, could be reduced by a minimum wage. "Minimum wage laws can raise cash wages, but the consequences are fewer jobs and a deterioration of the utilitarian value of the job package."
The Government is setting up a Low Pay Commission to take evidence from unions and employers, over the next year, on what level a minimum wage should be set.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments