Businesses grow faster in states with higher minimum wages, according to a new study.
As more states proceed with minimum wage increases on their own, a new study shows that small businesses grow faster in states with minimum wages above the federal level, which has remained at $5.15 since 1997.
The study, conducted by the Fiscal Policy Institute, a nonpartisan research and education organization based in New York, found that businesses employing fewer than 50 people added more new jobs in states that have raised wages.
With higher base wages, the study contends, retention is improved, and businesses ultimately save money on hiring and training new workers.
“I was surprised at the consistency of the results,” said James Parrott, an institute spokesman. “The data was studied in many different ways and no matter where you cut the data the results were the same.”
An initiative petition drive is underway in Oklahoma to place an increased minimum wage on the ballot in November.
- Metaverse business idea: virtual world tour guide - April 15, 2022
- Make extra money from extra workspace: co-working and 3rd workplaces in small towns - March 28, 2022
- Trade show booth design trend: hand drawn visuals - March 21, 2022
- New business sign design? Don’t use cursive script - February 14, 2022
- Way more people prefer rural than urban, new Pew Research study finds - February 1, 2022
- Top 5 Rural and small town trends 2022 - January 3, 2022
- How to start a real small small business - December 17, 2021
- Tip for better pop-ups and shed businesses - December 5, 2021
- Small town business idea: cat grooming - November 15, 2021
- Community engagement planning: old way vs. Idea Friendly way - October 3, 2021