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Tue Feb 26, 2013, 10:55 AM

Who would be affected by President Obama’s proposed minimum wage increase?

This is from February 14.

Who would be affected by President Obama’s proposed minimum wage increase?

by Natalie Sabadish and Doug Hall

Of the many proposals in Tuesday night’s State of the Union address, the one that seems to be receiving the most attention (especially in the Twitterverse) is President Obama’s plan to raise the federal minimum wage from $7.25 to $9.00 an hour by 2015. The President also called for subsequently indexing the minimum wage to rise automatically each year with the cost of living. Though some states have higher minimums, the federal minimum wage has been set at $7.25 since July 2009. In the meantime, as it always does, inflation has eroded its value. This proposal lays the foundation for an important and overdue conversation about increasing the minimum wage to combat its erosion over the past four and a half decades. We have found that raising the minimum hourly rate to $9.00 by 2015 would directly boost the wages of over 13 million Americans. The increase would also have a spillover effect, bumping up wages for another 4.7 million workers who earn just above minimum wage.

The demographic composition of minimum wage workers is often grossly mischaracterized, so let’s take a closer look at exactly who the 18 million workers who would see a raise under the president’s proposal really are. (The 18 million estimate is revised slightly from yesterday’s analysis to reflect improved methodology.) The findings that follow are largely an update to an earlier EPI analysis which was based on the somewhat higher minimum wage increase introduced by Senator Tom Harkin (D-Iowa) and Representative George Miller (D-California) as the Fair Minimum Wage Act of 2012.

It is a common misconception that the minimum wage workforce is comprised mostly of teenagers working part-time to make a little extra spending money. This is decidedly not the case; rather, the vast majority – 84.1 percent – of those benefitting from the proposed increase to $9.00 are at least 20 years old. This means that less than 16 percent of the workers impacted by the President’s proposal are teenagers. Additionally, about half (47.3 percent) of the 18 million affected workers are full-time employees, working at least 35 hours per week. Another 35.8 percent work between 20 and 34 hours per week, and only 16.9 percent work less than 20 hours a week. It is clear that the bulk of minimum wage workers are mid- or full-time adult employees, not teenagers or part-timers. (However, the fact that some of these workers are teens and part-timers who are working only to make some additional disposable income is not justification for paying them subpoverty wages.)





- more -

http://www.epi.org/blog/affected-president-obamas-proposed-minimum/

Good charts. Those opposed to the minimum wage are always pushing the notion that it will primarily benefit teenagers.

OOPS: GOP Rep. Inadvertently Makes The Case For Nearly Doubling The Minimum Wage
http://www.democraticunderground.com/10022374900

Obama Administration Aims To Fix Loophole Letting Home Health Workers Make Less Than Minimum Wage
http://www.democraticunderground.com/10022403409



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Reply Who would be affected by President Obama’s proposed minimum wage increase? (Original post)
ProSense Feb 2013 OP
Gorp Feb 2013 #1
Cha Feb 2013 #2

Response to ProSense (Original post)

Tue Feb 26, 2013, 02:35 PM

1. Just the vast majority of people barely scraping by at the current minimum wage.

 

It won't help much, but enough to matter.

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Response to ProSense (Original post)

Tue Feb 26, 2013, 02:38 PM

2. K&R thanks ProSense

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