A highly contested initiative was placed onto SeaTac's ballot this year. The initiative started as a petition and finally distilled into Proposition One on the ballot. The aim of Proposition One was to raise the minimum wage to a "living wage" of $15 an hour. This is just one of many such initiative taking root in America, but is it for the best? The economic theory of supply and demand shows what ought to happen when price floors like this occur. The theory states that buyers of human resources will consume less if the price per hour rises. If this is the case we should see unemployment rise when initiatives like this are put in place. We should also see low-skilled workers being replaced by more productive, more skilled labor than the original labor force. In essence it is theorized that by raising the minimum wage to help low-skilled workers the ending effect is to actual economically hurt those in question. Will this be the case at SeaTac? Due to the very nature of SeaTac it may be that there will be no decrease in workers employed. As an airport they may be able to pass the new costs associated with the law onto consumers.
To help me answer this question I tried consulting multiple studies on the effects of raising the minimum wage. All the studies I found were like this one presented in The American Economic Review. The studies either concluded that there was no negative employment effects or that they could not determine the effect. I hope that the data for SeaTac is recorded and studied if this initiative passes. Perhaps it could lend more insight into this subject. For now we will have to wait for the votes to be finalized. According to The Seattle Times we have a few more days and possibly await a recount before the vote is finalized.