June 14, 2006 12:44PM 

# Long-Term Costs of a Minimum Wage 

By [Michael F. Cannon](https://www.cato.org/people/michael-f-cannon) 

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Greg Mankiw [blogs](http://gregmankiw.blogspot.com/2006/06/republicans-and-minimum-wage.html) an NBER study by [David Neumark and Olena Nizalovaof](http://www.nber.org/papers/w10656) on the minimum wage, including this finding by Neumark and Nizalovaof:

> The evidence indicates that even as individuals reach their late 20’s, they work less and earn less the longer they were exposed to a higher minimum wage, especially as a teenager. The adverse longer-run effects of facing high minimum wages as a teenager are stronger for blacks. From a policy perspective, these longer-run effects of minimum wages are likely more significant than the contemporaneous effects of minimum wages on youths that are the focus of most research and policy debate.

##### Related Tags 

[General](https://www.cato.org/general), [Regulation](https://www.cato.org/regulatory-studies), [Trade Policy](https://www.cato.org/trade-policy), [Herbert A. Stiefel Center for Trade Policy Studies](https://www.cato.org/herbert-stiefel-center-trade-policy-studies) 

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