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

View the underlying data on epi.org.