---
title: "New York Times: Higher Minimum Wage May Have Losers"
url: https://burnaze.com/article/b597c528-27e2-4f63-8f00-df0022a6fe9e
source: "1851 Franchise"
original_url: https://1851franchise.com/new-york-times-higher-minimum-wage-may-have-losers-9248
category: "Finance"
topics: ["Finance & M&A","Regulation & legal"]
published: 2017-01-11T18:13:01.000Z
modified: 2026-11-01T03:12:29.156Z
image: https://newimage.1851franchise.com/cdn-cgi/image/quality=85,format=webp,width=1280,height=720/story/featureImage/753f460c928923fbe2fcbe0495a49f062188.jpg
---

# New York Times: Higher Minimum Wage May Have Losers

**TL;DR:** The American Economic Association discussed the potential ramifications of a higher minimum wage, including the possibility of employers hiring more productive workers and cutting hours for less productive ones. A study by John Horton of New York University found that wage increases could lead to employers hiring more productive workers, potentially leaving less productive workers without jobs.

*originally published in 1851 Franchise on 2017-01-11. [Read the original](https://1851franchise.com/new-york-times-higher-minimum-wage-may-have-losers-9248).*

## Story

There are a lot of factors to consider when discussing minimum wage. While a major focus has been on whether or not employers would need to cut down on staff or new hires, there’s also the question of whether or not businesses can survive financially when service costs need to be increased. This past weekend, the nation’s leading academic economists gathered for the American Economic Association, where they continued to speak about the possible ramifications/outcomes of minimum wage.

One of the most recent studies conducted by John Horton of New York University concluded that wage increases could result in employers hiring more productive workers in order to keep hours shorter, with the less productive workers potentially losing out on a job.

## Entities

- 1851 Franchise (publication)
- General (sector)
- minimum wage (topic)
- labour market (topic)
- American Economic Association (regulator)
- academic economics (topic)

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Originally reported by 1851 Franchise (https://1851franchise.com/new-york-times-higher-minimum-wage-may-have-losers-9248). Summarized by Burnaze (https://burnaze.com/article/b597c528-27e2-4f63-8f00-df0022a6fe9e).