Estimated effect of raising the minimum wage to $10.10 by 2017 on wages of affected workers and utilization of public assistance
| Estimated number of workers likely to get a raise | 27,118,000 |
|---|---|
| Share of all U.S. wage earners | 20.5% |
| Total wage increase for all affected workers | $31.8 billion |
| Average increase in hourly wage for affected workers | $1.61 |
| Predicted change in number of workers relying on public assistance | -1.7 million |
| Predicted annual change in total benefit dollars received among affected worker families | -$7.6 billion* |
| Implied government savings from each additional dollar in wages paid to affected workers | $0.24 |
* Reflects adjustment for known undercount of transfer income receipt in the CPS-ASEC data. See endnote 2 for details. Does not include the fungible value of Medicaid benefits.
Note: Workers affected by a minimum-wage increase to $10.10, average raise in hourly pay, and total wage increase to affected workers are updated to reflect recent changes in state minimum-wage levels from Cooper (2013).
Source: EPI analysis of Cooper (2013) and Current Population Survey Annual Social and Economic Supplement microdata, pooled data years 2010–2012
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