Thursday, June 5, 2014

Nice map illustrating the minimum wage and number of workers affected.

Here is a handy-dandy easy visual from The Brookings Institute to show students what the minimum wage is in each US State and an estimate as to much of the labor force earns up to 150% of that wage.

States without a number in them have utilized the Federal minimum wage of $7.25 as their floor wage

Each State CAN impose a minimum wage ABOVE the federal level (see those numbers in each State) but cannot set it below it.

The color coding shows, as a percent of that States labor force, the number of workers who earns LESS than 150% of that States required minimum wage.

For instance, in Texas 150% of the minimum wage is $10.86 ($7.25 X 150%) and between 27.1%-32% of the labor force earns that amount OR LESS (blue-ish area)

In California 150% of $8.00 is $12.00 and 32.1% or more earn that amount or less (purple area).

The authors of the study wanted to show how an increase in the minimum wage would impact many more workers than those just earning at or below the mandated wage (Federal or State).

The implication is those who now earn more than the minimum wage (up to at least 150% of it) will get a "bump" in pay as those at the lower end of the pay spectrum see a higher mandatory hourly wage.

They estimate about 16 million workers would be affected (in a positive way) by an increase in the minimum wage.

The authors are careful to explicitly mention they are not taking into account ANY employment OR dis-employment affects of a high minimum wage.  That is a BIG caveat!

Source: The Brookings Institute

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