The CBO just came out with a document on the effects of a minimum wage increase. The CBO's conclusions is that 16.5 million would get a higher wage but 1/2 million would lose their job.
I'm surprised that news reports are surprised. The evidence is clear that minimum wage increases cause job losses.
The best overview is this book where its authors conclude that minimum wages hurt the poor.
A more recent study in 2010 (and follow-up column) shows the effect of the last increase in 2009 resulted in 100s of thousands of lost part-time jobs:
A 2012 research paper looks at claims of no job losses from higher minimum
wages and found that those claims used poor techniques:
wages and found that those claims used poor techniques:
A minimum wage is a clear example of a government
distortion that causes
unintended and negative side effects. For example, unemployment didn't
get really bad until several years after 1929 stock market crash. The "trickle
down" phrase originally meant that high union wages helped other workers.unintended and negative side effects. For example, unemployment didn't
get really bad until several years after 1929 stock market crash. The "trickle
