Economics & Finance / Economic Theory / Labor Economics

Do Minimum Wage Hikes Actually Harm Worker Health? The Shocking Truth from a 2016 Study

This video dives into a groundbreaking 2016 study from the National Bureau of Economic Research (NBER) that challenges the common assumption that raising the minimum wage always improves worker well-being. Using data from 1993 to 2014, researchers found that minimum wage increases may actually worsen health outcomes for certain groups, especially unemployed men. While some workers experienced reduced mental stress, others saw significant declines in physical health. We break down the complex trade-offs between income, employment, and health, and explore why policymakers need to consider a broader set of tools to support low-skilled workers. Watch to uncover the unexpected consequences of a widely debated policy.