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Diane Publishing Books
Effects of a Minimum-Wage Increase on Employment and Family Income
Benjamin Plotinsky (ed); Douglas W. Elmendorf (ad)
Increasing the minimum wage would have two principal effects on low-wage workers. Most of them would receive higher pay that would increase their familyšůĽs income, and some of those families would see their income rise above the federal poverty threshold. But some jobs for low-wage workers would probably be eliminated, the income of most workers who became jobless would fall substantially, and the share of low-wage workers who were employed would probably fall slightly. This report examined the effects on employment and family income of two options for increasing the federal minimum wage: (1) A šůž$10.10 optionšůĚ would increase the federal minimum wage from its current rate of $7.25 per hour to $10.10 per hour in three steps -- in 2014, 2015, and 2016. After reaching $10.10 in 2016, the minimum wage would be adjusted annually for inflation as measured by the consumer price index. (2) A šůž$9.00 optionšůĚ would raise the federal minimum wage from $7.25 per hour to $9.00 per hour in two step -- in 2015 and 2016. After reaching $9.00 in 2016, the minimum wage would not be subsequently adjusted for inflation. Tables and figures. This is a print on demand report.
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