Commentary In the view of most economists, a minimum wage law will raise the compensation of some unskilled workers, and unemploy others. According to the Congressional Budget Office (pdf), a boost in the federal level to $15, in gradual steps until reached by 2025 will lift out of poverty some 900,000 people, while consigning 1.4 million to the unemployment rolls. We won’t debate these proportions, except to note that this all depends upon the elasticity of the demand curve for inexpert labor, and that this statistic rises the greater the length of run. That is, immediately upon passage of such an enactment, very few such employees will be fired, but as time goes on, more and more of them will be. Instead, we will now focus, only, on those who lose their jobs due to an increase in minimum wage level. We also keep in mind those who cannot be …
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