“Do not let any calamity-howling executive with an income of $40,000 a day,…tell you…that a wage of $392 a week is going to have a disastrous effect on all American industry.”
And a new study released today by the Economic Policy Institute provides lots of hard numbers that demonstrate just how beneficial a hike in the federal minimum wage from $7.25 to $9.80 would be (both to average families and the economy as a whole).
Key findings include:
-Increasing the federal minimum wage to $9.80 by July 1, 2014, would raise the wages of about 28 million workers, who would receive nearly $40 billion in additional wages over the phase-in period.
-Across the phase-in period of the minimum-wage increase, GDP would increase by roughly $25 billion, resulting in the creation of approximately 100,000 net new jobs over that period.
-Those who would see wage increases do not fit some of the stereotypes of minimum-wage workers.
- Women would be disproportionately affected, comprising nearly 55 percent of those who would benefit.
- Nearly 88 percent of workers who would benefit are at least 20 years old.
- Although workers of all races and ethnicities would benefit from the increase, non-Hispanic white workers comprise the largest share (about 56 percent) of those who would be affected.
- About 42 percent of affected workers have at least some college education.
- Around 54 percent of affected workers work full time, over 70 percent are in families with incomes of less than $60,000, more than a quarter are parents, and over a third are married.
- The average affected worker earns about half of his or her family’s total income.
You can read the entire report by clicking here.