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
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.
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.
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.
The Price of Domestic Workers’ Invisible Labor in U.S. Border Towns
Source: Sarah Holder, The Atlantic, June 25, 2018
Source: Alyssa Battistoni, In These Times, July 2018
Neither is a silver bullet, but they can help us tackle inequality and climate change.
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?
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?
Source: Shannon Brobst, Regional Financial Review, May 2018
Eighteen U.S. states and 20 cities rang in 2018 with increases in their minimum wage, bringing back into the spotlight the debate about whether to raise the federal minimum, which has remained at $7.25 since 2009 (see Chart 1). The question of whether it should be increased receives many different answers from Republicans, Democrats, economists and non-professional observers. Some argue that increasing the cost of labor hurts the economy because it could lead to jobs cuts for low-paid workers. Raising the minimum wage increases businesses’ labor costs, and thus, the cost of producing a good or service. Higher production costs may cause employers to lay off workers in order to contain costs and remain profitable, and could cause marginally profitable small or struggling businesses to close. Others counter this argument stating that a higher minimum wage helps the economy by boosting incomes and does not materially affect employment. This paper examines the positive and negative effects of raising the minimum wage from $7.25 to $12 and $15 in Pennsylvania and discusses policy implications at the local and federal levels.
Source: Ben Zipperer, Economic Policy Institute, Economic Snapshot, June 13, 2018
Higher wages were a key plank of the 1968 Poor People’s Campaign to reduce poverty. But over the last five decades the real (inflation-adjusted) value of the minimum wage—a key tool in the fight against poverty—has steadily eroded. Minimum wage increases have been too infrequent to keep up with inflation, let alone raise the real value of the minimum wage above where it was in 1968. While a full-time minimum wage worker in 1968 would have earned $20,600 a year (in 2017’s dollars), a worker paid the federal minimum wage in 2017 could only earn $15,080 working full time. Figure A compares these full-time minimum wage incomes to poverty thresholds for different family sizes and shows that, today, a single parent of one child would be consigned to poverty if that parent earned the federal minimum wage.
Source: Philip Mattera, Good Jobs First and Jobs With Justice Education Fund, June 2018
From the press release:
A new report finds that many large corporations operating in the United States have boosted their profits by forcing employees to work off the clock, cheating them out of required overtime pay and engaging in similar practices that together are known as wage theft.
The detailed analysis of federal and state court records shows that these corporations have paid out billions of dollars to resolve wage theft lawsuits brought by workers. Walmart, which has long been associated with such practices, has paid the most, but the list of the most-penalized employers also includes Bank of America, Wells Fargo and other large banks and insurance companies as well as major technology and healthcare corporations. Many of the large corporations are repeat offenders, and 450 firms have each paid out $1 million or more in settlements and/or judgments….
– Spreadsheet version of Appendix A: Parent companies with $1 million or more in wage theft penalties
– Spreadsheet version of Appendix B: 100 largest wage theft lawsuit settlements or verdicts
– Spreadsheet version of Appendix C: Wage theft lawsuits with confidential settlements
– Spreadsheet list of all lawsuits and enforcement actions analyzed in the report
Source: Jackson Brainerd, State Legislatures, Vol. 44 no. 2, February 2018
Millions work for less than the minimum wage, but tips make up the difference for many.
Source: United Way, 2018
The United Way ALICE Project provides a framework, language, and tools to measure and understand the struggles of the growing number of households in our communities that do not earn enough to afford basic necessities, a population called ALICE (Asset Limited, Income Constrained, Employed).
Scroll down to view the percent of households in each state – and county – that lived below the ALICE Threshold in 2016. The ALICE Threshold is the bare-minimum economic survival level that is based on the local cost of living in each area.
Hover over the U.S. map below to view state data, click on any state to see a county-by-county analysis of financial instability, and scroll further to compare all states.