Large Minimum Wage Increases Harm Job Prospects For Young And Less Educated Workers

So says this study by Bourne and Subramaniam (Cato, Sep. 2021). Here are four money quotes.

1. it is theoretically possible that the impact of a minimum wage hike on jobs might take a good time to take effect, with an increase in hourly labor costs dampening future job creation for affected groups rather than leading to direct layoffs.
2. the fact that a small minimum wage hike has small employment effects doesn’t mean that much larger future hikes would too.
3. employment effects of relatively large minimum wage increases accumulate gradually over time
4. larger minimum wage hikes have negative employment consequences for those most affected—in this case the young and less-educated.