Table 1
Total wages earned at new $12.50 minimum wage under two scenarios
| Level of Minimum wage | Employment of low wage workers* | Total wages earned** ($ Millions) |
|---|---|---|
| Base case | ||
| 11.50 | 45,000 | 1,076.4 |
| Increase to $12.50 | ||
| Employment, no job loss | 45,000 | 1,170.0 |
| Employment, with job loss as per CBO*** | 44,705 | 1,162.3 |
| Change from base case | ||
| Employment, no job loss | – | 93.6 |
| Employment, with job loss as per CBO*** | -295 | 85.9 |
* Assumed number that would be affected by the minimum wage increase to $12.50
** Assuming work full-time and full-year (2080 hours)
***CBO assumes an 0.754 percent employment loss for every 10% increase in the minimum wage. Using CBO elasticity, an increase of $1.00 from $11.50, or 8.7%, would imply an 0.656% employment loss
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