California's $20 minimum wage experiment: higher pay or higher unemployment?

California implemented a $20 minimum wage for fast-food workers, which could lead to higher unemployment long-term, according to economist Scott Sumner.

Sumner believes higher wages increase businesses' costs and profitability requirements for workers, making the job market more competitive.

The wage hike represents a growing labor movement that could have larger impacts if more industries follow suit.

Recently ratified hospitality worker contracts raised wages by up to 50%, which Sumner says is likely above equilibrium and unsustainable for job creation.

Diverging state minimum wage laws could impact where people live and work if they start moving for higher-paying jobs.