John J. Faso, in his commentary ("Economics of minimum wage," Dec. 18), questions the prudence of raising the minimum wage from $7.25 to $8.50 per hour.
A more exhaustive pursuit of the research on this subject, however, finds that such a rise may actually increase employment.
For example, case studies by labor economists David Card and Alan Krueger on the effect of a rise on New Jersey's minimum wage found that it actually raised employment. Meanwhile, Britain's 1999 adoption of a minimum wage, set at 46 percent of the median wage, has been determined to not have harmed employment and to have reduced income inequality.
While Mr. Faso's advocacy for recognition of regional economic differences and youth employment concerns are not without merit, the overarching argument for the actual benefits of a higher minimum wage have become increasingly apparent.
Mr. Faso's discussion on earned income credits further fails to recognize the plight of single workers who do not qualify for such programs. Nor does he explore the possibility the taxpayers are in fact subsidizing employers with an array of programs that reduce the imperative of employers to pay their employees a living wage. Given Mr. Faso's diligence with regard to the public purse, he may want to revisit this matter.
ANDREW HARVEY
Albany