Beacon Economics

The Impact of California's Minimum Wage on Youth Employment

Exploring the economic and social implications of wage increases on young workers

Assessing the Effects of California's Minimum Wage on Youth Employment

California’s minimum wage policies have significant implications for youth employment, particularly among those under the age of 25. This report from Beacon Economics analyzes the recent trends in youth unemployment, highlighting the sharp increase in joblessness among young workers. The study provides a comprehensive overview of the short- and long-term effects of the state’s policy choices, focusing on how minimum wage increases impact job opportunities, especially in sectors heavily reliant on young, entry-level workers.

The analysis digs into the economic consequences of minimum wage hikes on the overall labor market and the economic mobility of young people. By analyzing various data sets and employing robust economic models, the report offers a nuanced understanding of the challenges and potential unintended consequences of California’s current wage policies. The findings underscore the need for balanced approaches that protect young workers’ access to employment while striving for fair wage standards.

Key Highlights

Rising Youth Unemployment

California has seen an odd rise in it’s unemployment rate over the past two years; the newly unemployed are almost entirely young people.

Impact of Minimum Wage Policies

There is substantial empirical evidence illustrating the disemployment effects of minimum wages in large scale panel studies across U.S. states.

Long-Term Economic Implications

The negative impacts of minimum wages are shouldered by some of our most vulnerable citizens – younger workers who need both income and work experience to find their way in the world.

Expert Insights

“The loss of youth employment opportunities carries with it very real long-term harm by depriving our young people of work experience in their formative years, something that has been empirically shown to improve their chances of long-run success.”

– Christopher Thornberg PhD, Founding Partner, Beacon Economics

Get The Full Report

Access the report to gain comprehensive insights into the recent effects of California’s minimum wage policies on youth employment. This resource is invaluable for policymakers, business leaders, and researchers.

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