Although a higher minimum wage isn't expected to impact employee turnover or layoffs, it is projected to hurt job creation, according to a new study by Texas A&M University.
"We very carefully controlled for a number of factors that could conflate increases in the minimum wage and changes in employment and found that job creation was reduced substantially, but job destruction did not increase," says Jonathan Meer, assistant professor of economics at Texas A&M. "Net job growth falls in response to an increase in the minimum wage, but employee turnover is unaffected."
The survey finds that employees wouldn't lose their jobs if minimum wage is raised, but fewer employees would be hired in the future.
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