Why the National Living Wage is bad news for young people
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Increasing the minimum wage is seen in many quarters as a positive move which will have a positive impact upon the lives of young people in the UK. As a result, the announcement in yesterday's budget of a National Living Wage was greeted positively by most commentators, with the only criticism levelled against it that it did not go far enough. However, far from being good news, the National Living Wage is likely to spell disaster for tens of thousands of people, condemning them to a life of long term unemployment with young people and ethnic minorities being the most likely to suffer as a result. The minimum wage is constantly sold as good for workers, or minorities or women. In reality, however, it hurts the most vulnerable in society, especially young people and ethnic minorities. A study by American economists Jonathan Meer and Jeremy West found that '...the minimum wage reduces net job growth, primarily through its effect on job creation by expanding establishments.'
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