Seattle's minimum wage increase did not change crime or employment rates
Published Date: 3/15/2021
Source: phys.org
Between 2015 and 2017, Seattle, Washington, became the first U.S. city to increase its hourly minimum wage to $15, more than double the federal minimum wage and 60 percent higher than Seattle's previous minimum wage. A new study examined the impact of this change on public safety. The study was motivated by the idea that since crime is sometimes the result of material deprivation, changes in the minimum wage might have implications for criminal activity: Boosting the minimum wage could raise workers' salaries (which could be associated with reduced crime). But if higher minimum wages spur employers to substitute capital for labor, this could increase unemployment (which could be associated with increased crime). The study found little evidence that Seattle's aggregate rate of violent or property crimes changed relative to other U.S. cities. It also found no meaningful adverse effects on low-wage workers' rates of employment.