Jobs Blog May Archive

Minimum Wage, Unemployment and Going Offshore within the USA

By Johnboy at 05/28/07 06:51

I noticed the blog post by Jo Jo about whether Pennsylvanvia having a higher than federal minimum wage would increase unemployment in Pennsylvania and shift jobs out of state.

The U.S. Dpartment of Labor provides a nice [404 Check: was link to http:/ / www. dol. gov/ esa/ minwage/ america. htm, anchor: Chart of minimum wages] by state (well a comparison of State minimum wages to the Federal minimum wage).

There is large difference in some states, like Pennsylvania. $5.15 vs $7.15 (eff July 1, 2007).

The green States are ones with a higher than Federal minimum wage. If the theory is gorrect these states should have higher unemployement rates for unskilled workers and the other states should have seen a shift of businesses that make extensive use of unskilled labor too them.

What is your view?