Study Looks at Impact of Minimum Wage Hike in Md.

A study on raising the minimum wage in Maryland is warning about some of the negative impacts an increase would have on businesses, particularly on the hospitality industry and food services.

The study by George Mason University economist Stephen Fuller was released Monday in Annapolis. It was made public a day before a scheduled hearing on a measure to raise the minimum wage in Maryland from $7.25 to $10.10 by 2016.

Gov. Martin O'Malley supports the increase
. He says it will help the economy by providing people with more money to spend.

But Fuller concludes raising the cost of labor will have economic consequences unless the wage increases are compensated by increased operational efficiencies or increased product and service quality that offset price increases from higher labor costs.

Copyright AP - Associated Press
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