medium · SAT Reading & Writing

A labor economist hypothesized that increasing the minimum wage leads to a significant reduction in employee turnover. He argued that higher wages increase job satisfaction and the 'cost' of losing a job, making employees more likely to remain with their current employer.

Which finding, if true, would most directly support the researcher's hypothesis?

  1. The minimum wage was first established in the United States as part of the Fair Labor Standards Act of 1938 to protect workers' rights.
  2. Surveys of low-wage workers indicate that 'salary' is consistently ranked as the most important factor in their overall happiness with their current position.
  3. Many small business owners reported that they had to reduce their total number of employees to compensate for the higher mandatory wage costs.
  4. Retail chains in states that raised their starting pay saw a twenty percent drop in resignations over the following eighteen months compared to chains in other states.

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