CBO (2014) analysis of the effects of raising the minimum wage to $10.10 in 2016
| Workers affected by $10.10 in 2016 (millions) | |
|---|---|
| Directly affected workers | 17.0 |
| Indirectly affected workers | 8.0 |
| Total affected workers | 25.0 |
| CBO’s estimated wage increase for directly affected workers | 14.5% |
| CBO’s estimated employment change from wage increase for directly affected workers (millions) | -0.5 |
| Share of directly affected that CBO methodology implies … | |
| … will remain employed | 97.1% |
| … will become nonemployed | 2.9% |
| Share of all directly & indirectly affected that CBO methodology implies … | |
| … will remain employed | 98.0% |
| … will become nonemployed | 2.0% |
Notes: The average wage increase is the average of the CBO projected increases for teens (18 percent) and adults (14 percent), weighted by these groups’ shares of the population earning less than $11.50 (12 percent and 88 percent, respectively). “Nonemployed” means the individual is unemployed or not in the labor force.
Source: Employment levels and changes and wage changes are from CBO 2014