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