How might New York's wage hikes affect jobs?

New Yorkers throughout the state who make minimum wage have noticed a nice bump in their pay checks.

"New York is embarked on this amazing experiment where we are going to increase the minimum wage in the city from $9 to $15 in three years," says Greg David of Crain's New York Business.

The law, which went into effect at the beginning of 2017 was put in place by Gov. Andrew Cuomo.

David explains that this approach is a first of its kind.

"We've launched on this great experiment that should answer the question, 'Will the minimum wage cost jobs?'" David says. "My guess? I think it will cost some jobs because it is such a large increase."

In New York, the increase differs based on counties as well as size of business. New York City workers who are part of a business with at least 11 employees will be paid $11 an hour with a yearly raise of $2 until it hits $15. Employees in businesses with fewer than 11 employees will see an increase to $10.50, then $1.50 each year after.

Those in favor of the hike believe the move will help low-wage workers.

"There's no doubt that the people who are going to get these increases are going to live much better lives and people who are just above the minimum wage are also going to do well 'cause presumably their wages are going to be bumped up," David says.

But David explains that the increase may create many challenges for employers, making it harder for them to hire as many workers as they need without passing the increased employment costs onto their customers.

"We don't know if McDonald's will find ways to introduce lots of technology which will reduce jobs though they clearly are interested in doing that," David says. "We don't know if employers will start to hire better-trained workers and pay them more but hire fewer of them, and that would really hurt low-skilled, entry-level workers into it. That's what we are going to find out in the next three years."

The law plans to have a $15 minimum wage by 2021 for most parts of the state.