Orazem: Some businesses may close with a $15 minimum wage

January 22, 2021
News

Dr. Peter OrazemPeter Orazem, university professor, was interviewed for a Jan. 21 WOI-TV story, "Fight for $15 minimum wage continues into Biden administration."

Peter Orazem, another economics professor at Iowa State, said retail workers, servers and those in the hospitality industry will see the most impact if the minimum wage is increased. However, impacts on businesses could be dire. 

“Some [businesses] might be forced to close because they don’t generate enough revenue to pay the higher labor costs," Orazem said.

Orazem said half of the working population wouldn't be affected if the minimum wage were to be increased. That's because most people already make $15 or more an hour. 
This story also covered by:
Iowa State Daily, Jan. 24

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