Minimum Wage: Evidence and Effects

Published April 3, 2026

Economic theory predicts that making labor more expensive changes employer behavior—and decades of empirical research largely confirm it. Drawing on cross-state and cross-city studies, Neumark explains why most credible evidence finds that higher minimum wages reduce employment among low-skill workers. While some workers benefit from higher pay, others lose jobs, hours, or entry-level opportunities—revealing a trade-off that policy debates often ignore.

Check out more from David Neumark:

• Read "The Minimum Wage Is a Dead End" by David Neumark here.
• Read "Minimum Wages and Race Disparities" by David Neumark here.
• Read "Accounting for City Size, Minimum Wages Reduce Jobs Almost Everywhere" by David Neumark here.

Learn more about David Neumark here.

Recorded on August 14, 2025.

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The opinions expressed in this video are those of the authors and do not necessarily reflect the opinions of the Hoover Institution or Stanford University.

© 2026 by the Board of Trustees of Leland Stanford Junior University.