A new study from the Center for Economic Policy Research found across-the-board positive effects from minimum wage increases in 13 states:
At the beginning of 2014, 13 states increased their minimum wage. Of these 13 states, four passed legislation raising their minimum wage (Connecticut, New Jersey, New York, and Rhode Island). In the other nine, their minimum wage automatically increased in line with inflation at the beginning of the year (Arizona, Colorado, Florida, Missouri, Montana, Ohio, Oregon, Vermont, and Washington state).
As CEPR noted in March and April posts, economists at Goldman Sachs conducted a simple evaluation of the impact of these state minimum-wage increases. GS compared the employment change between December and January in the 13 states where the minimum wage increased with the changes in the remainder of the states. The GS analysis found that the states where the minimum wage went up had faster employment growth than the states where the minimum wage remained at its 2013 level.
The chart below shows the percentage change in employment for each state. The baseline is the average of the employment figures for the last five months of 2013 (August to December), which is measured against the average of the employment levels for the first five months of 2014 (January to May). As was the case with the earlier analyses by GS and CEPR, employment growth is still faster in states where the minimum wage went up.
Of the 13 states that increased their minimum wage in early 2014, all but one (New Jersey) are seeing employment gains. Furthermore, nine of the remaining 12 states are above the median for this period. The average change in employment for the 13 states that increased their minimum wage is +0.99% while the remaining states have an average employment change of +0.68%.
This is all good news for places like Washington D.C., SeaTac and Seattle where living wage laws are taking effect.
More To Read
April 17, 2024
2023-24 Impact and Gratitude Report
Reflecting on a year of progress and transition at EOI
April 12, 2024
Welcoming our New Executive Director, Rian Watt!
EOI is excited to begin its next chapter under new leadership
April 4, 2024
Is There a Valid Argument Against Cost-Free College in Washington?
Cost-free college is a meaningful investment that would change lives. What's stopping Washington from making it happen?