Businesses grow faster in states with higher minimum wages, according to a new study.
As more states proceed with minimum wage increases on their own, a new study shows that small businesses grow faster in states with minimum wages above the federal level, which has remained at $5.15 since 1997.
The study, conducted by the Fiscal Policy Institute, a nonpartisan research and education organization based in New York, found that businesses employing fewer than 50 people added more new jobs in states that have raised wages.
With higher base wages, the study contends, retention is improved, and businesses ultimately save money on hiring and training new workers.
“I was surprised at the consistency of the results,” said James Parrott, an institute spokesman. “The data was studied in many different ways and no matter where you cut the data the results were the same.”
An initiative petition drive is underway in Oklahoma to place an increased minimum wage on the ballot in November.
- Zoom Towns: attracting and supporting remote workers in rural small towns - December 10, 2020
- In an economic crisis, spend your brainpower before your dollars - November 25, 2020
- Video: How to fill empty car dealership buildings for the holidays - November 6, 2020
- How has 2020 changed the challenges rural small towns face? Tell us here - October 20, 2020
- The Idea Friendly Method to surviving a business crisis - October 6, 2020
- Join me for the Rural Renewal Symposium online Oct 13 - September 26, 2020
- Cheap placemaking idea: instant murals - September 11, 2020
- Refilling the rural business pipeline - July 7, 2020
- Huge vacant buildings: grants to renovate? - June 9, 2020
- Economic self defense for small towns - June 7, 2020