Raising the Minimum Wage

The minimum wage is one of the most debated topics in economics and the political arena. In this report, we analyze the economic impacts, stakeholder perspectives, and public opinion regarding an increase in the New Hampshire minimum wage. The report first reviews the large body of research on effects of the minimum wage on overall employment and income of workers, with an overview of relevant economic theory. We identify both areas of consensus and disagreement in the existing literature. The report further addresses wage adjustment channels that employers might change including hours, prices, or fringe benefits, as well as the social impact of minimum wage increases on education, poverty and demographic groups. We then conduct a new analysis of minimum wage effects utilizing data on contiguous counties in the New Hampshire area. Consistent with research for all contiguous counties, the results suggest that minimum wage increases in the state would not likely have significant negative effects on employment. Additionally, we present findings from interviews we conducted with stakeholders and industry representatives in New Hampshire and public opinion on minimum wage increases.