Cascade Report Finds Long-Term Negative Impacts on Youth from Oregon’s New Minimum Wage Policy

By Cascade Policy Institute

Cascade Policy Institute released a report today that has foreboding implications for young people in our state. The report was commissioned after passage of SB 1532 earlier this year, which phases in large increases in Oregon’s minimum wage…

[The report] analyzes… impacts of minimum wage regulation. It focuses on youth aged 16 to 24 because they are most likely to be affected by minimum wage increases as new entrants into the labor force…

“This report confirms ominous long-term negative consequences of minimum wage increases…” said Steve Buckstein, Cascade’s founder and Senior Policy Analyst.

Key findings..: 

• Increases in the minimum wage significantly depress youth employment and labor force participation…
• Collectively for all youth, what wage increases occur are more than offset by condemnation of a large share of youth to a zero wage; namely, to unemployment…
• Even a one-time increase in the minimum wage persistently continues to depress the share of youth who are employed…

We Respond & Your Comments

Why is it so hard for “Progressives” to understand that:

• When you increase the cost of anything (e.g. labor) you decrease demand;
• When you force employers to pay inexperienced kids what they pay experienced adults, adults get the jobs;
• A job at low wages is better than no job.

How is it “Progressive” to do something that hurts the kids you say you love?

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