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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