Table 1

Workers affected by proposed federal minimum wage increase

Federal minimum increased to $9.80 per hour in three increases of 85 cents, modeled for July 2012, 2013, and 2014
Total estimated workers in third year*  127,361,000
Directly affected**  19,485,000
Indirectly affected***  8,869,000
Total (directly & indirectly) affected  28,354,000

*Total estimated workers is estimated from the CPS respondents for whom either a valid hourly wage is reported or one can be imputed from weekly earnings and average weekly hours. Consequently, this estimate tends to understate the size of the full workforce.

**Directly Affected workers will see their wages rise as the new minimum wage rate will exceed their current hourly pay.

***Indirectly affected workers currently have a wage rate just above the new minimum wage (between the new minimum wage and the new minimum wage plus the dollar amount of the increase). They will receive a raise as employer pay scales are adjusted upward to reflect the new minimum wage.

Source: EPI Analysis of 2011 Current Population Survey, Outgoing Rotation Group

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