Category Archives: Minimum Wage

The Minimum Wage, EITC, and Criminal Recidivism

Source: Amanda Y. Agan – Rutgers University, Department of Economics, Michael D. Makowsky – Clemson University, John E. Walker Department of Economics, Date Written: September 25, 2018

From the abstract:
For recently released prisoners, the minimum wage and the availability of state Earned Income Tax Credits (EITCs) can influence both their ability to find employment and their potential legal wages relative to illegal sources of income, in turn affecting the probability they return to prison. Using administrative prison release records from nearly six million offenders released between 2000 and 2014, we use a difference-in- differences strategy to identify the effect of over two hundred state and federal minimum wage increases, as well as 21 state EITC programs, on recidivism. We find that the average minimum wage increase of $0.50 reduces the probability that men and women return to prison within 1 year by 2.8%. This implies that on average the effect of higher wages, drawing at least some released prisoners into the legal labor market, dominates any reduced employment in this population due to the minimum wage. These reductions in returns to incarcerations are observed for the potentially revenue generating crime categories of property and drug crimes; prison reentry for violent crimes are unchanged, supporting our framing that minimum wages affect crime that serves as a source of income. The availability of state EITCs also reduces recidivism, but only for women.

Impact of the Fight for $15: $68 Billion in Raises, 22 Million Workers

Source: Yannet Lathrop, National Employment Law Project, Data Brief, November 29, 2018

From the summary:
Six years ago, on November 29, 2012, a small group of fast-food workers in New York launched one of the most successful movements of the 21st century when they walked off their jobs and demanded $15 an hour and the right to form a union. Since then, the worker-led movement known as the Fight for $15 has inspired a wave of action on the minimum wage, helping 22 million low-wage workers throughout the country win $68 billion in raises to date. Thanks to the movement, income inequality and flagging paychecks are now among the most urgent economic issues of our time, and a $15 minimum wage is now a widely accepted benchmark. It is a key part of the platform of one of the major political parties, and lawmakers are planning to reintroduce a $15 federal minimum wage bill in the first week of the 116th Congress.

New York’s Experience after the Tipped Minimum Wage Increase – Restaurant worker wages, employment, and number of establishments have grown in the past two years.

Source: Institute for Policy Studies and Restaurant Opportunities Centers United, October 2018

A new analysis of U.S. Bureau of Labor Statistics wage and jobs data shows that in the last two years since raising the tipped minimum wage, New York state saw a significant boost in take home pay — wages and tips — earned by full-service restaurant workers and, contrary to predictions by minimum wage skeptics, an increase in both the number of full-service restaurant jobs and full-service restaurant establishments.

A joint project by the Institute for Policy Studies and Restaurant Opportunities Centers United, this research advances previous findings published in the Washington Post on the impact of the 2015 increase in the tipped minimum wage in New York state.

The Interaction Between the Minimum Wage and the Federal EITC

Source: Andrew P. Schaefer, Jessica A. Carson, Marybeth J. Mattingly, Andrew Wink, University of New Hampshire, Carsey School of Public Policy, November 13, 2018

Increases in the minimum wage are widely assumed to be beneficial for low-income workers, but it is important to consider the effect an increase might have on eligibility for other benefits, particularly the federal Earned Income Tax Credit (EITC). This fact sheet examines the interaction between the minimum wage and the EITC to determine whether a minimum wage increase would produce gains in the sum of earnings plus EITC dollars for low-income workers

Key Findings:

For workers earning the minimum wage, an increase would result in higher income; none would experience a lower net income due to changes in the federal EITC credit (though this may be offset by loss of other safety net program benefits).

For some family types, increased income would come primarily from a higher minimum wage; for others, gains would also come from the higher-value federal EITC triggered by their higher earnings.

Women and the Minimum Wage, State by State

Source: National Women’s Law Center, August 23, 2018

Women represent more than six in ten minimum wage workers in the U.S., and close to three-quarters of minimum wage workers in some states. Twenty-nine states and the District of Columbia currently have minimum wages above the federal level of $7.25 per hour, but in most states, the minimum wage still leaves a full-time worker with two children near or below the poverty level. See our interactive map to view the share of minimum wage workers in your state who are women.

Living in the Shadows: Latina Domestic Workers in the Texas-Mexico Border Region

Source: Linda Burnham, Lisa Moore, Emilee Ohia, A.Y.U.D.A. Inc., Comité de Justicia Laboral, Fuerza del Valle Workers’ Center, National Domestic Workers Alliance, 2018

In 2016, three community-based organizations that operate in the Texas–Mexico border region collaborated on a participatory research project. A.Y.U.D.A. Inc., Fuerza del Valle Workers’ Center and Comité de Justicia Laboral/Labor Justice Committee trained 36 women from the local communities as surveyors. The surveyors, most of them domestic workers themselves, interviewed 516 housecleaners, nannies and care workers for people with disabilities or for the elderly who work in private homes. The survey was conducted in Spanish and was composed of a standardized set of questions focused on work arrangements, working conditions, the impact of low pay on workers’ lives, injuries and abuse on the job and citizenship status.

This report, the result of the surveyors’ hard work knocking on doors, gaining trust and gathering data, is the very first quantitative study of a sizable number of domestic workers in the Texas–Mexico border region. The data provides us with a fact-based portrait of the difficult conditions domestic workers in the region face. The report findings will be used to shape ongoing organizing and advocacy to improve conditions and end workplace abuse. Our hope is that it will also shape the thinking of policy makers and encourage further research about working conditions along the border.

Related:

The Price of Domestic Workers’ Invisible Labor in U.S. Border Towns
Source: Sarah Holder, The Atlantic, June 25, 2018

Do We Need a Universal Basic Income? A Debate.

Source: Matt Bruenig, rebuttal by Rohan Grey and Raúl Carrillo, In These Times, June 2018

Getting free money from the government is popular. But would it prop up capitalism?

Related:

Do We Need a Federal Jobs Guarantee? A Debate.
Source: Rohan Grey and Raúl Carrillo, rebuttal by Matt Bruenig, In These Times, June 2018

Sens. Kirsten Gillibrand, Cory Booker and Bernie Sanders have all proposed a job guarantee. But would it be drudgery?