Job Market Monitor
Minimum wage
Minimum Wage Increases in Seattles – The increase from $9.47 to $13 per hour raised earnings by an average of $8-$12 per week
Using administrative employment data from the state of Washington, we use short-duration longitudinal panels to study the impact of Seattle’s minimum wage ordinance on individuals employed in low-wage jobs immediately before a wage increase. We draw counterfactual observations using nearest-neighbor matching and derive effect estimates by comparing the “treated” cohort to a placebo cohort drawn … Continue reading
Minimum Wages Impacts on Pay Gender Gap – A significant reduction in Ireland but not in UK
Women are disproportionately in low paid work compared to men so, in the absence of rationing effects on their employment, they should benefit the most from minimum wage policies. This study examines the change in the gender wage gap around the introduction of minimum wages in Ireland and the United Kingdom. Using survey data for … Continue reading
Minimum wage in South Africa – Not a living wage
On Wednesday, the South African Federation of Trade Unions (SAFTU)—which represents 30 unions with around 800,000 members—organized marches in six South African cities with thousands of participants protesting the government’s proposed minimum wage legislation. The current minimum wage proposal, which was approved by the cabinet in November 2017, calls for a 20 rand (R) ($1.60) … Continue reading
Automation and Minimum Wage in US – Some groups typically ignored in the minimum wage literature are in fact quite vulnerable to job loss
For decades, economists have studied the effects of the minimum wage on employees in the United States. These studies have largely focused on the employment effects for low- skilled workers – with the principal focus on teenagers. Overall, there is some controversy regarding whether disemployment effects exist, with some studies finding no effects,although with more … Continue reading
Minimum Wage in US – This week marks the eighth anniversary of the last time the federal minimum wage was raised
This week marks the eighth anniversary of the last time the federal minimum wage was raised, from $6.55 to $7.25 on July 24, 2009. Since then, the purchasing power of the federal minimum wage has fallen by 12.5 percent as inflation has slowly eroded its value. However, this decline in the buying power of the … Continue reading
Seattle’s Minimum Wage – The study from the Center on Wage and Employment Dynamics (CWED) at UC Berkeley’s Institute for Research on Labor and Employment
This brief on Seattle’s minimum wage experience represents the first in a series that CWED will be issuing on the effects of the current wave of minimum wage policies–those that range from $12 to $15. Upcoming CWED reports will present similar studies of Chicago, Oakland, San Francisco, San Jose and New York City, among others. The … Continue reading
Seattle’s Minimum Wage – Costing jobs research finds
The city’s escalating minimum wage has meant a slight increase in pay among workers earning up to $19 per hour, but the hours worked in such jobs have shrunk, a study commissioned by the city found. It estimates there would be 5,000 more such jobs without the Seattle law. The UW team published its first … Continue reading
Minimum Wages in US – No effect on prices of changes similar to those observed historically research finds
Minimum wage policy attracts an enormous amount of attention in the United States. Between January 2014 and July 2015, the effective minimum wage in- creased in 26 states, and as of January 2015, 75% of Americans supported an increase in the federal minimum wage to over twelve dollars per hour. Researchers have responded to this … Continue reading
Wage Theft in US – 2.4 Million workers lose $8 billion annually
This report assesses the prevalence and magnitude of one form of wage theft—minimum wage violations (workers being paid at an effective hourly rate below the binding minimum wage)—in the 10 most populous U.S. states. We find that, in these states, 2.4 million workers lose $8 billion annually (an average of $3,300 per year for year-round … Continue reading
Minimum Wage in US – Gradually raising to 15$ by 2024 would directly lift the wages of 22.5 million workers
The federal minimum wage was established in 1938, as part of the Fair Labor Standards Act (FLSA), to help ensure that all work would be fairly rewarded and that regular employment would provide a decent quality of life. In theory, Congress makes periodic amendments to the FLSA to increase the federal minimum wage to ensure … Continue reading
Minimum Wages in US – Wages for low-wage workers rose faster in states that increased their minimum wage
In 2016, wages for low-wage workers rose faster in states that increased their minimum wage than in states that saw no minimum wage increase. 17 states and the District of Columbia (shaded green on the map) increased their minimum wage through legislation, ballot measures, and indexing last year. The remaining 33 states did not increase … Continue reading
Minimum Wage in US – Study claiming the minimum wage harmed low-wage workers fails conventional tests EPI says
Beginning in 2007, there were two major developments in the U.S. economy. The federal minimum wage rose in steps from $5.15 to $7.25 per hour, and overall employment growth slowed significantly as the country began its descent into the Great Recession. A recent paper by Jeffrey Clemens and Michael Wither argues that the national minimum … Continue reading
US – Where voters could raise minimum wage
With the U.S. economy on the upswing, voters in Arizona, Colorado, Maine, and Washington are set to vote on increases to those states’ minimum wages by as much as 60 percent over the next few years, adding to nationwide momentum that has lifted wages for low-income workers significantly. Chosen excerpts by Job Market Monitor. Read … Continue reading
Minimum Wage in US – Only 5 percent of all employers believe the federal minimum wage ($7.25 per hour) is fair
Three-quarters of Americans (75 percent) are living paycheck-to-paycheck to make ends meet, according to a survey from CareerBuilder. Thirty-eight percent of employees said they sometimes live paycheck-to-paycheck, 15 percent said they usually do and 23 percent said they always do. While making ends meet is a struggle for many post-recession, those with minimum wage jobs … Continue reading
Federal Minimum Wage in US – This week marks the seven-year anniversary of the last time it was raised
This week marks the seven-year anniversary of the last time the federal minimum wage was raised, from $6.55 to $7.25 on July 24, 2009. Since then, the purchasing power of the federal minimum wage has fallen by 10 percent as inflation has slowly eroded its value. However, this decline in the buying power of the … Continue reading
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