Other Experts’ Opinions: Minimum wage increases

Expert witnesses provide opinions and services in a wide variety of contexts and industries. While this blog is focused on forensic economics, today’s post is taking a look at an economic expert’s role as a communicator to the public about relevant economics topics.

Mark Pingle, Economics professor at University of Nevada, Reno, was interviewed about the Nevada proposed measure that that would increase minimum wage from $8.25 to $13 per hour by 2024.

Pingle describes the complexity of the situation, controversially stating that “those who proposed this policy are probably proposing it because they don’t understand economics.”

He explains that a $13 per hour wage means each worker must produce $13 per hour for his or her employer or they are not worth keeping employed. Pingle predicts an increase in minimum wage will have a ‘negative impact’ and bring job cuts. He added it could be bad news for businesses ‘on the margin’.

The measure includes a clause that requires employers to pay triple back pay if they are found to be underpaying their employees, regardless of intent. Employers would also be liable for employee attorney fees and vulnerable to class actions.

Finally, Pingle points out that the measure does not note an exception for workers under 18, limiting the opportunity for high school students to find first jobs and begin to build their resumes.