New Study Defending NYC’s Minimum Wage Law is Fake News: https://mises.org/wire/new-study-defending-nyc’s-minimum-wage-law-fake-news
It went on to project further job losses based on industry survey data:
As AEI's Mark Perry noted, "it usually takes an economic recession to cause year-over-year job losses at NYC's full-service restaurants."
In related news, we’ve seen significant growth in automation in cities like New York, in part due to the increasing cost of labor. Once again we see policies passed in the name of helping workers end up just benefiting businesses that can afford the upfront cost of automation, explaining decisions like Amazon’s recent expansion of their cashier-less grocery stores.
....
Minimum Wage and Youth Unemployment
Lastly, left entirely unaddressed in the study is any attempt to measure the costs of minimum wage increases on those most vulnerable to its effects, such as young workers without resumes, and those who are re-entering the workforce. As politicians arbitrarily increase the minimum wage, these are the workers at greatest risk of being priced out of the market. As such, we’d expect to see higher unemployment rates for these workers.
The data suggests that this is precisely what we see.
In July, national youth unemployment (16-24 year olds) was at 8.5%.
The most recent data I can find for New York City youth unemployment is from 2017, showing the city unemployment rate for 20-24 year-olds was at almost 16%. To try to get a better comparison, national youth unemployment in 2017 averaged at 9.3%. Still, the NYC data’s focus on 20-24 year-olds means that a true apples-for-apples comparison of 16-24 year-olds would likely result in a much higher unemployment rate given that, nationally, the unemployment rate for 16-19 year-olds is substantially higher than their (relative) elders.
While the disproportionally high NYC youth unemployment rates may not be entirely driven by minimum wage laws, basic economic analysis would suggest it plays a significant role in what the Brookings Institute has described as a looming “urban youth unemployment crisis.” Naturally, cities are responding not by ending their intervention in labor markets, but by creating new government programs.
With that, a new opportunity for a bad economic study has been created.