Ra

ise

Th

e

Min

imu

m w

ag

e

1

For more information, please contact:

The Office of Vice Speaker Benjamin J.F. CruzI Mina’trentai Dos Na Liheslaturan GuahanT 477-2520/1 | F 477-2522http://www.senatorbjcruz.com

Raise The

Minimum wage

TA

BL

E O

F C

ON

TE

NT

S

INCOME EQUALITY AND GENDER

LOCAL IMPACTS OF THE LAST FEDERAL MINIMUM WAGE INCREASES

COST OF LIVING

POVERTY ON GUAM

IMPACT OF PROPOSED MINIMUM WAGE INCREASE

ECONOMICS OF MINIMUM WAGE

50

3

8

16

19

23

SETTING THE RECORD STRAIGHT ABOUT THE MINIMUM WAGE

30

2

For more information, please contact:

The Office of Vice Speaker Benjamin J.F. Cruz

I Mina’trentai Dos Na Liheslaturan Guahan

T 477-2520/1 | F 477-2522

http://www.senatorbjcruz.com

Setting the record straight about the minimum wage 42

Ra

ise

Th

e

Min

imu

m w

ag

e

INCOME EQUALITY AND GENDER

3

Min

imu

m w

ag

eR

ais

e T

he

GU

AM

WO

RK

FO

RC

E: BY

GE

ND

ER

Workforce Population By Sex on Guam

Men; 34960;

57%

Women; 26880;

43%

Public Sector Workforce Population By Sex Guam

Men, 7400, 48%Women,

8170, 52%

Women Workforce Population By Sector Guam

Public Sector,

8,170, 30%

Private Sector, 18,710,

70%

Private Sector Workforce Population By Sex Guam

Men, 27560,

60%

Women, 18710,

40%

4Source Guam DOL Current Employment Statistics Historical Tables 1993-2013. December 2013

Min

imu

m w

ag

eR

ais

e T

he

Full Time, Year

Round62%

Part Time Year

Round38%

Women

INC

OM

ED

IST

RIB

UT

ION

: BY

GE

ND

ER

Income Distribution Women Income Distribution Men

Income Distribution Between Genders

5

$1 to $9,999 or

loss15%

$10,000 to $14,999

12%

$15,000 to $24,999

25%

$25,000 to $34,999

16%

$35,000 to $49,999

14%

$50,000 to $64,999

8%

$65,000 or more10%

Row Labels$1 to

$9,999 or loss

$10,000 to

$14,999

$15,000 to

$24,999

$25,000 to

$34,999

$35,000 to

$49,999

$35,000 to

$49,999

$50,000 to

$64,999

$65,000 to

$74,999

$75,000 or more

Female 6383 4951 7730 4911 4184 4184 2195 638 1308

Worked full-time, year-round

939 2,553 5,495 4,044 3,561 3,561 1,865 540 1,104

Worked less than full-time, year-round

5,444 2,398 2,235 867 623 623 330 98 204

Male 6042 4865 10225 6792 5986 5986 3565 1350 3803

Worked full-time, year-round

1,190 2,723 7,512 5,719 5,360 5,360 3,190 1,201 3,373

Worked less than full-time, year-round

4,852 2,142 2,713 1,073 626 626 375 149 430

Grand Total 12,425 9,816 17,955 11,703 10,170 10,170 5,760 1,988 5,111Full Time

Year Round

71%

Part Time Year

Round29%

Men

Source: U.S. Census Bureau, 2010 Census Guam

Table 6-5. Work Status in 2009 and Sex by Income in 2009

NOTE: For information on confidentiality protection, nonsampling error, and definitions, see

www.census.gov/prod/cen2010/doc/dct2gu.pdf.

$1 to $9,999 or loss

22%

$10,000 to $14,999

16%

$15,000 to $24,999

23%

$25,000 to $34,999

15%

$35,000 to $49,999

13%

$50,000 to $64,999

6%

$65,000 or more

5%

Gender

Less then $25,000 per year

$35,000 per year or more

Men 51.61% 32.32%

Women 61.34% 23.67%

Min

imu

m w

ag

eR

ais

e T

he

PR

IVA

TE

SE

CT

OR

: IND

US

TR

YG

EN

DE

RC

OM

PO

SIT

ION

Women Workforce Population By Industry

AGRICULTURE, 20, 0%

CONTRACTORS, 360, 2%

MANUFACTURING, 350, 2%

TRANSPORTATION & PUBLIC

UTILITIES, 1,840, 10%

WHOLESALE TRADE, 720,

4%RETAIL TRADE,

6,120, 33%FINANCE,

INSURANCE & REAL ESTATE,

1,770, 9%

SERVICES, 7,530, 40%

Private Sector: Industry Gender Composition

0% 20% 40% 60% 80% 100%Men Women

Women Workforce Population By Industry

AGRICULTURE, 140, 0% CONTRACTORS,

6,760, 24%

MANUFACTURING, 1,070,

4%

TRANSPORTATION & PUBLIC

UTILITIES, 2,970, 11%

WHOLESALE TRADE,

1,530, 6%

RETAIL TRADE,

5,410, 20%

FINANCE, INSURANCE

& REAL ESTATE, 760,

3%

SERVICES, 8,920, 32%

Industry by Median Earnings and Gender

IndustryMales Full

Timeyear-round

Women Full Time

...Agriculture, forestry, fishing and hunting, and mining $28,438 $21,250

...Construction $25,369 $27,125

...Manufacturing $27,132 $19,239

...Wholesale trade $24,009 $24,091

...Retail trade $22,969 $19,755

...Transportation and warehousing, and utilities $35,081 $32,123

...Information $36,314 $26,842

...Finance and insurance, and real estate and rental and leasing $31,188 $28,956

...Professional, scientific, and management, and administrative and waste management services $29,437 $28,173

...Educational services, and health care and social assistance $36,315 $33,219

...Arts, entertainment, and recreation, and accommodation and food services $18,996 $15,936

...Other services, except public administration $24,250 $21,181

...Public administration $45,997 $35,862

6

Source Guam DOL Current Employment Statistics Historical Tables 1993-2013. December 2013

Source: U.S. Census Bureau, 2010 Census Guam Table 6-7. Industry by Median Earnings in 2009 and Sex

Ra

ise

Th

e

Min

imu

m w

ag

e

SC

HO

OL

EN

RO

LL

ME

NT, E

DU

CA

TIO

NA

LA

TT

AIN

ME

NT, A

ND

SE

XB

Y

EA

RN

ING

SG

UA

MSchool Enrollment, Educational Attainment, and Sex by Earnings

As shown in the comparison below, the total men who attended some college but didn’t graduate and make 50k + annually (2,528) total more than women with a bachelors making 50k + annually (2,286) despite there being more women in the workforce with bachelors degrees.

Men who never graduated or never finished their bachelors degree making 50k + annually (4,266) total more than the total women on Guam making 50k + annually (3,573).

7

Men Women

$50,000 to $64,999$65,000 or

more$50,000 to $64,999

$65,000 or more

Bachelor's degree or higher 1276 1010

Some college or associate's degree 1227 1301 438 316

High school graduate, GED, or alternative credential 861 632 298 177

Less than high school graduate 128 117 27 31

Men without Bachelor Degrees vs All Women Making 50k +

4266 3573

Total Population making more than 50k Per Year 7679 3573

Guam Income Earners with Bachelors Degrees 7522 8209

Source: U.S. Census Bureau, 2010 Census GuamTable 6-3. School Enrollment, Educational Attainment, and Sex by Earnings in 2009

Ra

ise

Th

e

Min

imu

m w

ag

e

Ra

ise

Th

e

Min

imu

m w

ag

e

LOCAL IMPACTS OF THE LAST FEDERAL MINIMUM WAGE INCREASES

8

Min

imu

m w

ag

eR

ais

e T

he

JO

BM

AR

KE

TB

EF

OR

E&

AF

TE

R

TH

EM

INIM

UM

WA

GE

INC

RE

AS

E

Employment, Hourly Rate, and Minimum Wage

9

$4.00

$9.00

$14.00

$19.00

$24.00

34,000

36,000

38,000

40,000

42,000

44,000

46,000

48,000M

ar-0

2

Dec

-02

Sep

-03

Jun

-04

Mar

-05

Dec

-05

Sep

-06

Jun

-07

Mar

-08

Dec

-08

Sep

-09

Jun

-10

Mar

-11

Dec

-11

Sep

-12

Jun

-13

Emp

loym

ent

Employment Private Sector

Hourly Rate - Private Sector

7/2

4/20

07: $

5.8

5

7/2

4/20

08: $

6.5

5

7/2

4/20

09: $

7.2

5

Periods Following the Increased Minimum Wage

Before Minimum Wage Increases

Quarter Ending

Employed -Private Sector

Average Hourly Rate -Private Sector

Avg Weekly Hours-Private Sector

Sum of Min

Wage

Jun-04 42,340 $10.73 35.5 $5.15

Sep-04 42,630 $11.11 36 $5.15

Dec-04 42,480 $11.03 35.7 $5.15

Mar-05 42,790 $11.08 35.4 $5.15

Jun-05 42,960 $11.03 35.1 $5.15

Sep-05 43,120 $10.92 35.6 $5.15

Dec-05 43,230 $10.85 35.9 $5.15

Mar-06 43,580 $10.99 35.9 $5.15

Jun-06 42,980 $10.68 35.3 $5.15

Sep-06 43,210 $10.81 35.7 $5.15

Dec-06 44,160 $10.84 36 $5.15

Mar-07 44,450 $11.10 36 $5.15

Jun-07 43,850 $10.90 36.4 $5.15

Sep-07 44,650 $11.15 35.9 $5.85

Dec-07 45,320 $11.29 36.4 $5.85

Mar-08 46,680 $11.16 36.2 $5.85

Jun-08 45,580 $11.12 36.5 $5.85

Sep-08 45,990 $11.43 36 $6.55

Dec-08 45,730 $11.47 36.3 $6.55

Mar-09 45,900 $11.63 36.3 $6.55

Jun-09 44,710 $11.59 34.9 $6.55

Sep-09 44,860 $12.15 35.6 $7.25

Dec-09 45,670 $12.16 36.1 $7.25

Mar-10 46,320 $12.20 35.9 $7.25

Jun-10 46,440 $12.20 36.4 $7.25

Sep-10 46,430 $12.33 36.5 $7.25

Dec-10 46,790 $12.37 36.4 $7.25

Mar-11 45,920 $12.45 35.9 $7.25

Jun-11 44,490 $12.28 35.3 $7.25

Sep-11 44,630 $12.24 35.8 $7.25

Dec-11 44,760 $12.36 35.7 $7.25

Mar-12 45,090 $12.49 36.1 $7.25

Jun-12 44,800 $12.57 35.7 $7.25

Sep-12 45,450 $12.45 35.8 $7.25

Dec-12 46,100 $12.95 37 $7.25

Mar-13 46,090 $12.87 36.4 $7.25

Jun-13 45,570 $12.67 37.6 $7.25Source: Calculations from Guam DOL Current Employment Statistics Historical Tables 1993-2013

Min

imu

m w

ag

eR

ais

e T

he

BE

FO

RE

INC

RE

AS

ET

O$

5.8

5 A

ND

AF

TE

RIN

CR

EA

SE

TO

$7

.25

Average Hourly Wage, Minimum Wage and Employment Volume in Guam's Private Sector

10

4 years Before 1st of 3 Minimum Wage Increases were Implemented (Quarter Ending 9/2003-Quarter Ending 6/2007)

4yravg

43,160 $10.94 35.8 $20,344.57

Quarter

Ending

Employed -Private Sector

Average Hourly Rate -

Private Sector

Wkly HrsPaid –PrivateSector

Avg Annual Earnings –

Private Sector

Sum of

Min Wage

Sep-03 42,030 $10.40 36 $19,468.80 5.15

Dec-03 42,770 $10.92 36.1 $20,499.02 5.15

Mar-04 42,850 $11.15 35.7 $20,698.86 5.15

Jun-04 42,340 $10.73 35.5 $19,807.58 5.15

Sep-04 42,630 $11.11 36 $20,797.92 5.15

Dec-04 42,480 $11.03 35.7 $20,476.09 5.15

Mar-05 42,790 $11.08 35.4 $20,396.06 5.15

Jun-05 42,960 $11.03 35.1 $20,131.96 5.15

Sep-05 43,120 $10.92 35.6 $20,215.10 5.15

Dec-05 43,230 $10.85 35.9 $20,254.78 5.15

Mar-06 43,580 $10.99 35.9 $20,516.13 5.15

Jun-06 42,980 $10.68 35.3 $19,604.21 5.15

Sep-06 43,210 $10.81 35.7 $20,067.68 5.15

Dec-06 44,160 $10.84 36 $20,292.48 5.15

Mar-07 44,450 $11.10 36 $20,779.20 5.15

Jun-07 43,850 $10.90 36.4 $20,631.52 5.15

4 years After Last Minimum Wage Increases was Implemented(Quarter Ending 9/2009-Quarter Ending 6/2014)

4yr avg 45,637 $12.44 36.2 $23,402.05

Quarter Ending

Employed -Private Sector

Average Hourly Rate

- Private Sector

Wkly HrsPaid –PrivateSector

Avg Annual Earnings –

Private Sector

Sum of Min

Wage

Sep-09 44,860 $12.15 35.6 $22,492.08 7.25

Dec-09 45,670 $12.16 36.1 $22,826.75 7.25

Mar-10 46,320 $12.20 35.9 $22,774.96 7.25

Jun-10 46,440 $12.20 36.4 $23,092.16 7.25

Sep-10 46,430 $12.33 36.5 $23,402.34 7.25

Dec-10 46,790 $12.37 36.4 $23,413.94 7.25

Mar-11 45,920 $12.45 35.9 $23,241.66 7.25

Jun-11 44,490 $12.28 35.3 $22,541.17 7.25

Sep-11 44,630 $12.24 35.8 $22,785.98 7.25

Dec-11 44,760 $12.36 35.7 $22,945.10 7.25

Mar-12 45,090 $12.49 36.1 $23,446.23 7.25

Jun-12 44,800 $12.57 35.7 $23,334.95 7.25

Sep-12 45,450 $12.45 35.8 $23,176.92 7.25

Dec-12 46,100 $12.95 37 $24,915.80 7.25

Mar-13 46,090 $12.87 36.4 $24,360.34 7.25

Jun-13 45,570 $12.67 37.6 $24,772.38 7.25

Compared to the 4 years before July 2007 when the 3 minimum wage increases began.• 2,477 More Jobs• $1.50 More Per Hour• 1.2 Hours Worked More Per WeekThe Minimum Wage Increase did not negatively affect Jobs, Hours, or Pay after the last increase.

GUAM TO INCREASE MINIMUM WAGE BY 60 CENTSBy Steve LimtiacoPacific Daily News, July 18, 2006“Local businessmen during legislative session late last month told lawmakers that increasing the minimum wage would have a domino effect on other wage earners in order to maintain a fair pay separation between veteran employees and new hires.”

Source: Calculations from Guam DOL Current Employment Statistics Historical Tables 1993-2013

Min

imu

m w

ag

eR

ais

e T

he

MIN

WA

GE

IMP

AC

TA

FT

ER

HIK

ET

O$

7.2

5September 2005 - June 2009 September 2009 - June 2013

11

Compared to the 4 years before July 2009 when the minimum wage was last increased.• 1,017 More Jobs• $1.30 More Per Hour• .18 Hours Worked More Per WeekThe Minimum Wage Increase did not negatively affect Jobs, Hours, or Pay after the last increase.

Source: Calculations from Guam DOL Current Employment Statistics Historical Tables 1993-2013

Quarter Ending

EmployedAvg Hourly Rate

Avg Weekly Hours Paid

Quarter Ending

EmployedAvg Hourly Rate

Avg Weekly Hours Paid

Sep-05 43,120 $10.92 35.60 Sep-09 44,860 $12.15 35.60

Dec-05 43,230 $10.85 35.90 Dec-09 45,670 $12.16 36.10

Mar-06 43,580 $10.99 35.90 Mar-10 46,320 $12.20 35.90

Jun-06 42,980 $10.68 35.30 Jun-10 46,440 $12.20 36.40

Sep-06 43,210 $10.81 35.70 Sep-10 46,430 $12.33 36.50

Dec-06 44,160 $10.84 36.00 Dec-10 46,790 $12.37 36.40

Mar-07 44,450 $11.10 36.00 Mar-11 45,920 $12.45 35.90

Jun-07 43,850 $10.90 36.40 Jun-11 44,490 $12.28 35.30

Sep-07 44,650 $11.15 35.90 Sep-11 44,630 $12.24 35.80

Dec-07 45,320 $11.29 36.40 Dec-11 44,760 $12.36 35.70

Mar-08 46,680 $11.16 36.20 Mar-12 45,090 $12.49 36.10

Jun-08 45,580 $11.12 36.50 Jun-12 44,800 $12.57 35.70

Sep-08 45,990 $11.43 36.00 Sep-12 45,450 $12.45 35.80

Dec-08 45,730 $11.47 36.30 Dec-12 46,100 $12.95 37.00

Mar-09 45,900 $11.63 36.30 Mar-13 46,090 $12.87 36.40

Jun-09 44,710 $11.59 34.90 Jun-13 45,570 $12.67 37.60

4 Year Average

44,571 $11.12 35.964 Year

Average45,588 $12.42 36.14

Min

imu

m w

ag

eR

ais

e T

he

EM

PL

OY

ME

NT

PRIVATE SECTOREmployment September 2005 -

June 2009Employment September 2009-June

2013 (4 years)

AGRICULTURE 313 229

CONSTRUCTION 5,456 6,508

General Building Contractors 4,128 5,018

Heavy Construction, ex. Building 527 464

Special Trade Contractors 801 1,026

MANUFACTURING 1,654 1,706

Food and kindred products 465 474

Printing and publishing 338 318

All other manufacturing 851 914

TRANSPORTATION & PUBLIC UTILITIES 4,858 4,524

WHOLESALE TRADE 2,029 2,147

RETAIL TRADE 11,783 11,500

FINANCE, INSURANCE & REAL ESTATE 2,493 2,579

SERVICES 15,986 16,440

Hotels and other lodging places 5,339 5,331

All other services 10,646 11,109

TOTAL PRIVATE SECTOR 44,571 45,632

12

Min

imu

m w

ag

eR

ais

e T

he

HO

UR

LY

EA

RN

ING

S

PRIVATE SECTORAverage Hrly Earnings

September 2005 - June 2009Average Hrly Earnings September 2009-

June 2013 (4 years)

AGRICULTURE $8.26 $9.24

CONSTRUCTION $13.08 $14.13

General Building Contractors $12.66 $13.74

Heavy Construction, ex. Building $14.87 $16.86

Special Trade Contractors $13.81 $12.43

MANUFACTURING $13.62 $14.37

Food and kindred products $9.48 $9.94

Printing and publishing $11.02 $12.16

All other manufacturing $15.33 $15.90

TRANSPORTATION & PUBLIC UTILITIES $14.40 $16.63

WHOLESALE TRADE $9.65 $10.66

RETAIL TRADE $10.04 $10.60

FINANCE, INSURANCE & REAL ESTATE $11.94 $13.05

SERVICES $9.51 $11.19

Hotels and other lodging places $7.38 $8.58

All other services $11.66 $14.05

TOTAL PRIVATE SECTOR $11.12 $12.42

13

Min

imu

m w

ag

eR

ais

e T

he

HO

UR

SP

AID

PE

RW

EE

K

PRIVATE SECTORAverage Hours paid per Week September 2005 - June 2009

Average Hours paid per Week September 2009-June 2013 (4 years)

AGRICULTURE 39 36

CONSTRUCTION 41 40

General Building Contractors 40 39

Heavy Construction, ex. Building 47 48

Special Trade Contractors 40 36

MANUFACTURING 39 40

Food and kindred products 36 37

Printing and publishing 34 35

All other manufacturing 41 41

TRANSPORTATION & PUBLIC UTILITIES 39 39

WHOLESALE TRADE 38 38

RETAIL TRADE 32 31

FINANCE, INSURANCE & REAL ESTATE 38 38

SERVICES 35 37

Hotels and other lodging places 36 37

All other services 35 36

TOTAL PRIVATE SECTOR 35.96 36.06

14

Ra

ise

Th

e

Min

imu

m w

ag

eH

OT

EL

IND

US

TR

YA

ND

EM

PL

OY

ME

NT

CO

MP

EN

SA

TIO

NQuarter Ending

AvgHourly Rate

AvgHourly Weekly

Hours Paid

Male WomenTotal

Employment

Mar-04 $6.88 34.5 2480 2460 5080

Jun-04 $6.84 34.4 2460 2520 4960

Sep-04 $6.96 36.6 2460 2490 4950

Dec-04 $6.89 35.6 2470 2560 5030

Mar-05 $6.88 34.6 2430 2640 5080

Jun-05 $6.83 34.9 2500 2610 5110

Sep-05 $6.79 34.7 2580 2700 5280

Dec-05 $6.60 36.7 2670 2710 5380

Mar-06 $7.01 35.8 2790 2770 5570

Jun-06 $6.96 34 2750 2740 5490

Sep-06 $6.87 35.2 2640 2660 5300

Dec-06 $6.89 36.8 2700 2730 5450

Mar-07 $6.78 36.6 2730 2710 5320

Jun-07 $7.27 35.9 2730 2770 5380

Sep-07 $7.54 35 2660 2760 5420

Dec-07 $7.89 36.9 2790 2740 5530

Mar-08 $7.53 37.1 2830 2680 5410

Jun-08 $7.64 36.4 2740 2650 5260

Sep-08 $7.90 36 2710 2630 5340

Dec-08 $8.24 35.8 2570 2690 5260

Mar-09 $7.98 36.1 2500 2640 5150

Jun-09 $8.15 31.7 2400 2480 4890

Sep-09 $8.70 35 2410 2430 4840

Dec-09 $8.51 36.8 2460 2500 4960

Mar-10 $8.33 37.2 2510 2520 5170

Jun-10 $8.36 37.3 2550 2490 5210

Sep-10 $8.55 38.3 2710 2620 5330

Dec-10 $8.52 38.6 2750 2690 5440

Mar-11 $8.29 37.6 2800 2680 5410

Jun-11 $8.28 35.8 2670 2610 5070

Sep-11 $8.59 36.6 2720 2670 5120

Dec-11 $8.97 37.6 2800 2750 5280

Mar-12 $8.64 37.9 2700 2610 5370

Jun-12 $8.66 36.2 2650 2620 5410

Sep-12 $8.85 37.4 2820 2760 5570

Dec-12 $8.80 40.4 2880 2790 5720

Mar-13 $8.62 37.8 2980 2810 5790

Jun-13 $8.59 34.7 2850 2810 5600

Sep-13 $8.63 37.3 2810 2740 5540

Dec-13 $8.70 40.1 2810 2790 5540

With Room Rates, Visitor Arrivals, and Occupancy Rate Increasing Significantly, Employees working in the Hotel and Lodging Industry are averaging the same hourly rate in the quarter ending December 2013 as they were in quarter ending September 2009, the last time the minimum wage was increased.

Increased prices in the hotel industry and increased customer volume has not translated into increased compensation of the employees in the hotel industry.

Most Hotels on Guam have qualifying certificates and are exempt 75% of their taxes, regardless of their profit margins.

15

Ra

ise

Th

e

Min

imu

m w

ag

e

COST OF LIVING

16

Ra

ise

Th

e

Min

imu

m w

ag

eA

VE

RA

GE

WA

GE

S, M

INIM

UM

WA

GE, A

ND

TH

EC

OS

TO

FL

IVIN

GO

NG

UA

MCost of Living Vs Average Private Sector Wages and the Minimum Wage

17

Average Hourly Rate -Private Sector, 2014-Q1,

$12.77

Minimum Wage Per Hour, 2014-Q1, $7.25

CPI FOOD, 132.1

CPI HOUSING, 124.3

CPI MEDICAL CARE, 114.7

80

90

100

110

120

130

140

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

20

07

-Q1

20

07

-Q2

20

07

-Q3

20

07

-Q4

20

08

-Q1

20

08

-Q2

20

08

-Q3

20

08

-Q4

20

09

-Q1

20

09

-Q2

20

09

-Q3

20

09

-Q4

20

10

-Q1

20

10

-Q2

20

10

-Q3

20

10

-Q4

20

11

-Q1

20

11

-Q2

20

11

-Q3

20

11

-Q4

20

12

-Q1

20

12

-Q2

20

12

-Q3

20

12

-Q4

20

13

-Q1

20

13

-Q2

20

13

-Q3

20

13

-Q4

20

14

-Q1

CP

I 20

07

IND

EX

HO

UR

LY W

AG

E

QUARTER AND YEAR

Average Wages in the Private Sector, Minimum Wage, And The Cost of Living on Guam

Average Hourly Rate - Private Sector

Minimum Wage Per Hour

CPI FOOD

CPI HOUSING

CPI MEDICAL CARE

Source Guam DOL Current Employment Statistics Historical Tables 1993-2013. December 2013Guam Consumer Price Index 1st Quarter 2007 through 1st Quarter 2014 Vol. XL No 1

Min

imu

m w

ag

e

Ra

ise

Th

e

Ra

ise

Th

e

Min

imu

m w

ag

eC

PI Q

1 20

14

18

Ra

ise

Th

e

Min

imu

m w

ag

e

POVERTY ON GUAM

19

Ra

ise

Th

e

Min

imu

m w

ag

eP

OV

ER

TY

ON

GU

AM

Living Wage vs Minimum Wage vs Poverty Wage Comparison against state with lowest cost of living (South Dakota) and Hawaii

.

Families in Poverty on Guam Sections of Slides

20

Below 50 percent of

poverty level,

17,195, 11%

Below 125 percent of poverty level, 45,785, 29%

Below 185 percent of

poverty level,

69,777, 45%

Above 185 percent of

poverty level, 23,752, 15%

Population of Guam and Poverty

Families in Poverty with female

householder, no husband present ,

2,874, 44%

All other familes in Poverty,

3,640, 56%

Source: U.S. Census Bureau, 2010 Census Guam Table 1-17. Poverty Status and Workers in Family in 2009 by Ethnic Origin or Race: 2010

Source: U.S. Census Bureau, 2010 Census Guam Table 1-17. Poverty Status and Workers in Family in 2009 by Ethnic Origin or Race: 2010

Living Wage Calculation for Hawaii

Hourly Wages 1 Adult1 Adult, 1 Child

1 Adult, 2 Children

1 Adult, 3 Children

2 Adults2 Adults,

1 Child

2 Adults, 2 Childre

n

2 Adults, 3 Childre

n

Living Wage $12.51 $25.09 $31.42 $42.37 $18.88 $22.76 $24.10 $30.61

Poverty Wage $5.99 $8.06 $10.13 $12.90 $8.06 $10.13 $12.90 $14.26

Minimum Wage onGuam

$7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25

Living Wage Calculation for South Dakota

Hourly Wages 1 Adult1 Adult, 1 Child

1 Adult, 2 Children

1 Adult, 3 Children

2 Adults2 Adults,

1 Child

2 Adults, 2 Childre

n

2 Adults, 3 Childre

n

Living Wage $7.44 $16.23 $20.14 $25.10 $12.46 $15.41 $16.75 $19.54

Poverty Wage $5.21 $7.00 $8.80 $10.60 $7.00 $8.80 $10.60 $12.40

Minimum Wage on Guam $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25

Source: Mass. institutes of technology http://povertyinamerica.mit.edu/

Ra

ise

Th

e

Min

imu

m w

ag

eP

OV

ER

TY

& T

HE

MIN

. WA

GE

AT

FU

LL

TIM

EGuam Minimum Wage Annual Salary Vs Poverty Guidelines Set For Hawaii (Individual and for families by size)

.

Guam Minimum Wage Annual Salary Vs Poverty Guidelines Set For 48 Contiguous States (Individual and for families by size)

21

$0.00

$5,000.00

$10,000.00

$15,000.00

$20,000.00

$25,000.00

$30,000.00

$35,000.00

19

59

19

60

19

61

19

62

19

63

19

64

19

65

19

66

19

67

19

68

19

69

19

70

19

71

19

72

19

73

19

74

19

75

19

76

19

77

19

78

19

79

19

80

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

Sum of Annual Income on Minimum Wage

HI Poverty Line Individual

HI Poverty Line Family of 2

HI Poverty Line Family of 3

HI Poverty Line Family of 4

HI Poverty Line Family of 5

$0.00

$5,000.00

$10,000.00

$15,000.00

$20,000.00

$25,000.00

$30,000.00

19

59

19

60

19

61

19

62

19

63

19

64

19

65

19

66

19

67

19

68

19

69

19

70

19

71

19

72

19

73

19

74

19

75

19

76

19

77

19

78

19

79

19

80

19

81

19

82

19

83

19

84

19

85

19

86

19

87

19

88

19

89

19

90

19

91

19

92

19

93

19

94

19

95

19

96

19

97

19

98

19

99

20

00

20

01

20

02

20

03

20

04

20

05

20

06

20

07

20

08

20

09

20

10

20

11

20

12

20

13

Sum of Annual Income on Minimum Wage 100% of Poverty Line for 1 100% of Poverty Line for 2 100% of Poverty Line for 3 100% of Poverty Line for 4

Ra

ise

Th

e

Min

imu

m w

ag

eC

EN

SU

S: P

OV

ER

TY

Table 1-17. Poverty Status and Workers in Family in 2009 by Ethnic Origin or Race: 2010

Characteristic

Total

One Ethnic Origin or Race

Two or More

Ethnic Origins or

RacesTotal

Native Hawaiian and Other Pacific Islander Asian

White

Other Ethnic

Origin or Race

Chamorro [1] Chuukese

Other Native

Hawaiian and Other

Pacific Islander Filipino Korean Other Asian

...BELOW POVERTY LEVEL IN 2009

.........Number below poverty level

...All families [2,3] 6,514 6,097 2,679 1,121 556 1,194 159 148 173 67 417

......With related children under 18 years 5,491 5,121 2,298 1,051 508 886 101 95 128 54 370

.........With related children under 5 years 2,986 2,775 1,261 667 297 385 25 32 73 35 211

...Families with female householder, no husband present [2,3] 2,874 2,680 1,372 475 209 423 53 63 65 20 194

......With related children under 18 years 2,589 2,408 1,234 456 202 349 43 47 58 19 181

.........With related children under 5 years 1,405 1,305 697 275 118 153 9 11 28 14 100

...All individuals 35,848 32,491 14,018 6,918 3,153 5,894 690 737 803 278 3,357

......Under 18 years 16,581 14,597 6,908 3,542 1,477 2,015 172 157 244 82 1,984

.........Related children under 18 years 16,428 14,458 6,859 3,512 1,462 1,988 169 150 239 79 1,970

......18 to 64 years 17,822 16,486 6,610 3,312 1,622 3,297 430 509 517 189 1,336

......18 years and over 19,267 17,894 7,110 3,376 1,676 3,879 518 580 559 196 1,373

.........65 years and over 1,445 1,408 500 64 54 582 88 71 42 7 37

......Unrelated individuals 5,571 5,143 2,017 549 433 1,298 212 281 268 85 428

.........Percent below poverty level

...All families [2,3] 19.0 19.0 20.6 63.8 36.8 12.7 17.6 10.5 5.3 8.2 20.0

......With related children under 18 years 24.8 24.7 26.2 66.9 42.1 15.9 21.6 13.3 6.9 9.7 25.1

.........With related children under 5 years 30.2 30.2 31.4 70.7 46.6 18.7 22.3 13.3 8.2 12.3 30.5

...Families with female householder, no husband present [2,3] 37.6 37.5 36.7 77.9 52.8 24.9 39.3 25.0 27.8 23.8 39.0

......With related children under 18 years 46.2 46.1 44.1 80.4 61.6 33.1 48.9 32.2 33.9 27.9 47.3

.........With related children under 5 years 54.1 54.2 52.3 81.8 69.8 36.4 56.3 28.2 44.4 41.2 53.5

22

Ra

ise

Th

e

Min

imu

m w

ag

e

IMPACT OF A PROPOSED MINIMUM WAGE INCREASE

23

Ra

ise

Th

e

Min

imu

m w

ag

eP

RO

PO

SE

DM

INIM

UM

WA

GE

Minimum Wage Impact Estimate Summary

Occupational Group 1 - $8.20 2 - $9.15 3 - $10.10

Food Preparation and Serving Related Occupations 1,453 4,130 5,161

Office and Administrative Support Occupations 845 2,495 3,022

Sales and Related Occupations 642 1,774 2,363

Building and Grounds Cleaning and Maintenance Occupations 728 1,854 2,054

Transportation and Material Moving Occupations 362 930 1,158

Protective Service Occupations 303 885 1,076

Personal Care and Service Occupations 212 535 730

Installation, Maintenance, and Repair Occupations 197 460 530

Production Occupations 106 329 423

Construction and Extraction Occupations 88 205 415

Arts, Design, Entertainment, Sports, and Media Occupations 43 101 123

Healthcare Support Occupations 23 73 120

Management Occupations 0 94 94

Healthcare Practitioners and Technical Occupations 11 44 72

Business and Financial Operations Occupations 0 23 56

Community and Social Service Occupations 10 20 47

Education, Training, and Library Occupations 7 26 32

Legal Occupations 7 18 18

Computer and Mathematical Occupations 0 19 19

Life, Physical, and Social Science Occupations 0 0 5

Grand Total 5,035 14,011 17,514

24

The proposed federal minimum wage increase is proposed to begin 2015, and raise 95 cents per year for three years leaving the minimum wage at $10.10 per hour in 2017

Ra

ise

Th

e

Min

imu

m w

ag

eM

INW

AG

EIM

PA

CT

ES

TIM

AT

E$

8.2

0 /H

RDistribution of Estimated Employees Impacted within Occupational Groups from $8.20 Minimum Wage Effective 2015

25

Total, Food Preparation and Serving Related

Occupations, 1,453, 29%

Total, Office and Administrative Support Occupations, 845, 17%Total, Building

and Grounds Cleaning and Maintenance Occupations,

728, 14%

Total, Sales and Related Occupations,

642, 13%

Total, Transportation and Material Moving Occupations, 362, 7%

Total, Protective Service Occupations,

303, 6%

Total, Personal Care and Service

Occupations, 212, 4%

Total, Installation, Maintenance, and

Repair Occupations, 197, 4%

Total, Production Occupations, 106,

2%

Total, Construction and Extraction

Occupations, 88, 2%

Total, Arts, Design, Entertainment, Sports,

and Media Occupations, 43, 1% Total, Healthcare

Support Occupations, 23, 0%

Total, Healthcare Practitioners and Technical

Occupations, 11, 0%Total, Community and

Social Service Occupations, 10, 0%

Total, Education, Training, and Library Occupations, 7, 0%

Total, Legal Occupations, 7, 0%

(5,035 estimated to make less than proposed minimum wage)

Minimum Wage Impact Estimates calculated from May 2012 OES EstimateMay 2012 OES Estimates Source for Data: http://www.bls.gov/oes/current/oes_gu.htmData: Occupational Employment Statistics (OES) SurveyData Owner: Bureau of Labor Statistics, Department of Labor

Ra

ise

Th

e

Min

imu

m w

ag

eM

INW

AG

EIM

PA

CT

ESTIM

ATE

$9

.15

/HR

Distribution of Estimated Employees Impacted within Occupational Groups from $9.15 Minimum Wage Effective 2016

26

Total, Food Preparation and Serving Related Occupations, 4,130,

29.47%

Total, Office and Administrative Support

Occupations, 2,495, 17.81%

Total, Building and Grounds Cleaning and Maintenance

Occupations, 1,854, 13.23%

Total, Sales and Related Occupations, 1,774,

12.66%

Total, Transportation and Material Moving

Occupations, 930, 6.64%

Total, Protective Service Occupations, 885, 6.32%

Total, Personal Care and Service Occupations, 535,

3.82%

Total, Installation, Maintenance, and

Repair Occupations, 460, 3.28%

Total, Production Occupations, 329, 2.34%

Total, Construction and Extraction Occupations,

205, 1.46%

Total, Arts, Design, Entertainment, Sports,

and Media Occupations, 101, 0.72%

Total, Management Occupations, 94, 0.67%

Total, Healthcare Support Occupations, 73, 0.52%

Total, Healthcare Practitioners and

Technical Occupations, 44, 0.31%

Total, Education, Training, and Library Occupations,

26, 0.18%

Total, Business and Financial Operations

Occupations, 23, 0.16%

Total, Community and Social Service

Occupations, 20, 0.14%

Total, Computer and Mathematical

Occupations, 19, 0.14%Total, Legal Occupations,

18, 0.12%

(14,011 estimated to make less than proposed minimum wage)

Minimum Wage Impact Estimates calculated from May 2012 OES EstimateMay 2012 OES Estimates Source for Data: http://www.bls.gov/oes/current/oes_gu.htmData: Occupational Employment Statistics (OES) SurveyData Owner: Bureau of Labor Statistics, Department of Labor

Ra

ise

Th

e

Min

imu

m w

ag

eM

INW

AG

EIM

PA

CT

ESTIM

ATE

$1

0.1

0 /H

RDistribution of Estimated Employees Impacted within Occupational Groups from $8.20 Minimum Wage Effective 2015

27

Food Preparation and Serving Related

Occupations, 5,161, 29.47%

Office and Administrative Support Occupations,

3,022, 17.25%

Sales and Related Occupations, 2,363,

13.49%

Building and Grounds Cleaning and Maintenance

Occupations, 2,054, 11.73%

Transportation and Material Moving

Occupations, 1,158, 6.61%

Protective Service Occupations, 1,076, 6.14%

Personal Care and Service Occupations, 730, 4.17%

Installation, Maintenance, and Repair Occupations,

530, 3.02%

Production Occupations, 423,

2.42%

Construction and Extraction Occupations,

415, 2.37%

Arts, Design, Entertainment, Sports, and Media Occupations, 123,

0.70%

Healthcare Support Occupations, 120, 0.69%

Management Occupations, 94, 0.54%

Healthcare Practitioners and Technical Occupations,

72, 0.41%

Business and Financial Operations Occupations,

56, 0.32%

Community and Social Service Occupations, 47,

0.27%

Education, Training, and Library Occupations, 32,

0.18%

Computer and Mathematical Occupations,

19, 0.11%Legal Occupations, 18,

0.10% Life, Physical, and Social Science Occupations, 5,

0.03%

(17,514 estimated to make less than proposed minimum wage)

Minimum Wage Impact Estimates calculated from May 2012 OES EstimateMay 2012 OES Estimates Source for Data: http://www.bls.gov/oes/current/oes_gu.htmData: Occupational Employment Statistics (OES) Survey

Data Owner: Bureau of Labor Statistics, Department of Labor

Ra

ise

Th

e

Min

imu

m w

ag

eT

OP

10

JOB

SIM

PA

CTED

BY

INC

REA

SE

Impacted by $0.95 Increase 2015

Top 20 Occupations 8.20

Cashiers 428

Waiters and Waitresses 403

Janitors and Cleaners, Except Maids and Housekeeping Cleaners 323

Stock Clerks and Order Fillers 295

Security Guards 280

Food Preparation Workers 265

Maids and Housekeeping Cleaners 250

Combined Food Preparation and Serving Workers, Including Fast

Food 245

Cooks, Restaurant 203

Maintenance and Repair Workers, General 139

Retail Salespersons 136

Landscaping and Groundskeeping Workers 135

Customer Service Representatives 134

Office Clerks, General 108

Light Truck or Delivery Services Drivers 98

Dishwashers 98

Bookkeeping, Accounting, and Auditing Clerks 81

Driver/Sales Workers 80

Construction Laborers 71

Cooks, Fast Food 60

Hotel, Motel, and Resort Desk Clerks 60

Grand Total 3,889

Impacted by $0.95 Increase 2017Impacted by $0.95 Increase 2016 2016

28

Top 20 Occupations 9.15

Waiters and Waitresses 1,208

Cashiers 855

Security Guards 840

Food Preparation Workers 795

Maids and Housekeeping Cleaners 750

Combined Food Preparation and Serving Workers, Including Fast Food 735

Retail Salespersons 680

Customer Service Representatives 670

Janitors and Cleaners, Except Maids and Housekeeping Cleaners 645

Stock Clerks and Order Fillers 590

Office Clerks, General 540

Cooks, Restaurant 405

Landscaping and GroundskeepingWorkers 405

Maintenance and Repair Workers, General 348

Dishwashers 293

Light Truck or Delivery Services Drivers 195

Cooks, Fast Food 180

Construction Laborers 178

Childcare Workers 165

Cleaners of Vehicles and Equipment 165

Grand Total 10,640

Top 20 Occupations 10.10

Waiters and Waitresses 1,449

Cashiers 1,283

Security Guards 1,008

Food Preparation Workers 954

Maids and Housekeeping Cleaners 900

Combined Food Preparation and Serving Workers, Including Fast Food 882

Retail Salespersons 680

Customer Service Representatives 670

Janitors and Cleaners, Except Maids and Housekeeping Cleaners 645

Cooks, Restaurant 608

Stock Clerks and Order Fillers 590

Office Clerks, General 540

Landscaping and GroundskeepingWorkers 405

Construction Laborers 355

Dishwashers 351

Maintenance and Repair Workers, General 348

Cooks, Fast Food 216

Bookkeeping, Accounting, and Auditing Clerks 203

Childcare Workers 198

Cleaners of Vehicles and Equipment 198

Grand Total 12,481

Ra

ise

Th

e

Min

imu

m w

ag

e

MIN

IMU

MW

AG

EIN

CR

EASE

VS

EMP

LOYM

ENT

CO

STSFO

RFU

LLTIM

EEM

PLO

YEES

Many to most minimum waged workers do not work full time per each employer they work for.

Employers do not have to do the following for non-full time workers:

• Provide Medical, Dental, Vision Insurance

• Paid Leave and Paid Sick Leave

For employers who do employ minimum wage workers that work full time for them, it would be a $1,976 increase in salary/wage cost per employee per year increased max. That is $164.66 more money an employer will have to pay per employee per month max, and $82.33 per paycheck.

If you do not employ minimum wage workers that work full time, and employ workers that do not make minimum wage but make below either the proposed minimum wage increases, the costs will not exceed the amounts above per year.

Is 1,976 per year (the maximum increase from proposed raise) really impact your profit margins so big it will change the way you have to do business, prevent you from profiting, and make you feel that a $1,976 max increase per employee per year is going to ruin the economy.

Minimum Wage increase in perspective of average costs for average employees working full time

29

Employees 1 day 1 week 1 month 1 year

1 Employee $7.60 $38.00 $152.00 $1,976.00

2 Employees $15.20 $76.00 $304.00 $3,952.00

3 Employees $22.80 $114.00 $456.00 $5,928.00

4 Employees $30.40 $152.00 $608.00 $7,904.00

5 Employees $38.00 $190.00 $760.00 $9,880.00

6 Employees $45.60 $228.00 $912.00 $11,856.00

7 Employees $53.20 $266.00 $1,064.00 $13,832.00

8 Employees $60.80 $304.00 $1,216.00 $15,808.00

9 Employees $68.40 $342.00 $1,368.00 $17,784.00

10 Employees $76.00 $380.00 $1,520.00 $19,760.00

Employees 1 day 1 week 1 month 1 year

1 Employee $6.65 $33.25 $133.00 $1,729.00

2 Employees $13.30 $66.50 $266.00 $3,458.00

3 Employees $19.95 $99.75 $399.00 $5,187.00

4 Employees $26.60 $133.00 $532.00 $6,916.00

5 Employees $33.25 $166.25 $665.00 $8,645.00

6 Employees $39.90 $199.50 $798.00 $10,374.00

7 Employees $46.55 $232.75 $931.00 $12,103.00

8 Employees $53.20 $266.00 $1,064.00 $13,832.00

9 Employees $59.85 $299.25 $1,197.00 $15,561.00

10 Employees $66.50 $332.50 $1,330.00 $17,290.00

Ra

ise

Th

e

Min

imu

m w

ag

e

ECONOMICS OF MINIMUM WAGE

30

Ra

ise

Th

e

Min

imu

m w

ag

e

TH

ER

EAL

MIN

IMU

MW

AG

EFA

LLSA

SIN

FLATIO

NR

ISES, REP

RESEN

TING

LESS

PU

RC

HA

SING

PO

WER

FOR

MIN

IMU

MW

AG

EEA

RN

ING

S

Minimum wage from 1938 to 2012 in nominal dollars and inflation-adjusted 2012 dollars

31

View the minimum wage from 1938 to 2012 dataSource: U.S. Department of Labor, Wage & Hour Division, www.dol.gov/whd/minwage/chart.htm1Inflation adjusted using CPI-W, annual averages 1938 to 2012, bls.gov/cpi

Ra

ise

Th

e

Min

imu

m w

ag

e

OV

ERTIM

E, REA

LG

DP

PER

CA

PITA

HA

SSTEA

DILY

INC

REA

SED, EV

ENW

HEN

THE

MIN

IMU

MW

AG

EH

AS

BEEN

RA

ISED

Real GDP per capita compared to real minimum wage, 1930 to 2012

32

View the real GDP per capita compared to real minimum wage, 1930 to 2012 dataSource: Bureau of Economic Analysis, www.bea.govMid-year population estimates from U.S. Census Bureau, www.census.gov1In 2012 dollars, Chained GDP Deflator2In 2012 dollars CPI-W, annual averages 1928 to 2012, bls.gov/cpi

Ra

ise

Th

e

Min

imu

m w

ag

eR

EAL

GD

P P

ERC

AP

ITAH

AS

BEEN

INC

REA

SING

33

View the Real GDP per capita dataSource: Bureau of Economic Analysis, www.bea.govMid-year population estimates from U.S. Census Bureau, www.census.gov

Ra

ise

Th

e

Min

imu

m w

ag

e

INP

ERC

ENT

TERM

S, THE

CH

AN

GE

ING

DP

ISN

OT

AFFEC

TED

BY

INC

REA

SESIN

THE

MIN

IMU

MW

AG

E

34

View the Annual pct in real GDP per capita, compared to pct in real minimum wage dataSource: Bureau of Economic Analysis, www.bea.govMid-year population estimates from U.S. Census Bureau, www.census.govMinimum Wage from U.S. Department of Labor, Wage & Hour Division, www.dol.gov/whd/minwage/chart.htm1In 2012 dollars, Chained GDP Deflator2In 2012 Dollars CPI-W, annual averages 1928 to 2012, bls.gov/cpi

Min

imu

m w

ag

eR

ais

e T

he

A $10.10 Minimum Wage Would Raise a Family of Four With One Full-Time Worker Above the Poverty Line Counting Their Tax Credits

Earnings of Full-Time Worker at Minimum WageRelative to Poverty Line for Family of Four

Dollars

30,000

25,000

20,000

15,000

10,000

5,000

0

$7.25 Minimum Wage $10.10 Minimum WageNote: Based on projected poverty threshold for a family of four in 2016. Does not include SNAP assistance.Source: CEA calculations.

5

Raising the minimum wage to $10.10 would raise incomes for an estimated 12 million people now in poverty, lifting 2 million of them out of poverty.

5% Above Poverty Line

17% Below Poverty Line $6,050

$6,200 Tax Credits

Wages$20,200

$14,500

35

Min

imu

m w

ag

eR

ais

e T

he

The Minimum Wage Affects Inequality – With Inequality BetweenLow/Middle-Income Historically Tracking the Minimum Wage

Women's 50-10 Wage Gap vs. Real Minimum Wage

Index, 1973=100 Index, 1973=100 (inverted)

140 65

130 75Women's 50-10

Wage Gap(left axis)

12085

Real Minimum Wage(right axis, inverted)

11095

100

10590

11580

12570

60 135

1973 1978 1983 1988 1993 1998 2003 2008 2013Note: The 50-10 wage gap is the ratio of income earned at the 50th percentile to income earned at the 10th percentile.Source: CEA calculations based on updated data from Lemieux (2007).

6

Studies have shown that the minimum wage plays an important role in reducing inequality.

Important in the bottom of the wage distribution and for women (DiNardo, Fortin, and Lemieux, 1996). Declining real value of the minimum wage explained roughly one-third to one-half of the increase in the 50-10 wage gap for

women during the 1980s (Autor, Manning, and Smith, 2010).

2012

36

Min

imu

m w

ag

eR

ais

e T

he

As of January 2014, 21 States + DC Have Higher Minimum Wagesthan the Federal and 11 States Index to Inflation

7

During the 2013 legislative session, CA, CT, NY and RI passed legislation to provide for minimum wage increases; NJ raised the minimum wage and indexed it to inflation by ballot initiative. These changes take effect at different points in 2014 and 2015.

37

Min

imu

m w

ag

eR

ais

e T

he

The US Remains Slightly Lower Than Other Advanced

Even With a $10.10 Minimum Wage Countries

Real Minimum Wage in 2016 U.S. Dollars*Australia

Luxembourg

France

Belgium

Ireland

New Zealand

Netherlands

Canada

United KingdomJapan

Austria

United States

Israel

SloveniaSpain

Greece

Korea

Portugal

Turkey

Poland

Czech Republic

Slovak Republic

Hungary

ChileEstonia

Mexico

0 2 4 6 8 10 12 14 16 182016$ Per Hour

*Underlying data in 2012 US$, converted to 2016 US$ using CBO projections for consumer price inflation. Source: OECD; CEA calculations.

8

38

Min

imu

m w

ag

eR

ais

e T

he

Raising the Minimum Wage Would Help Businesses by IncreasingProductivity and Reducing Turnover and Absenteeism

Some of the key findings from decades of research on the minimum wage:

1. Increases worker productivity. A higher minimum wage would increase the productivity ofworkers:

• Greater motivation and perception of fairness. Workers are motivated directly by feeling theyare receiving a fair wage (e.g., Bewley 1999; Mas 2006). Akerlof (1986) argues that higherwages increase employee morale, which raises productivity. Also, workers monitor each othermore when they feel that they are receiving good, fair wages, creating a culture of hard workthat allows employers to spend less on supervising them (Akerlof 2012).Improved focus on the job. Higher wages help workers maintain better physical and mental•

health and could help relieve “decision fatigue” (Mani, et al 2013; Shah et al, 2012), allowingthem to be more productive at work.

2. Reduces turnover and saves on recruiting/training costs. Higher wages lead to lower turnover,reducing the amount employers must spend recruiting and training new employees (Dube, Reich,and Naidu 2005; Dube, Lester, and Reich 2013).

3. Reduces absenteeism. When workers are paid higher wages, they are absent from work less often,increasing both their own productivity and that of their coworkers (Allen 1983; Mefford 1986;Pfeifer 2010; Zhang 2013).

39

Min

imu

m w

ag

eR

ais

e T

he

Based on 64 Studies of Minimum Wage Increases, Researchers Find “No Discernable Effect on Employment”

Study FindsIncreasedEmployment

Study FindsReduced Employment

10

Studies have shown that minimum wage increases lead to “little or no employmentresponse”: Comparing 288 pairs of contiguous U.S. counties with minimum wage differentials from 1990 to 2006 finds “no adverse

employment effects” (Dube, Lester, and Reich, 2010). A meta-analysis of the minimum wage research published since 2000 concludes, “The weight of that evidence pointsto little or no

employment response to modest increases in the minimum wage” (Schmitt, 2013). Researchers have noted that even this distribution of studies is biased because studies (spuriously) finding largepositive effects on

employment are likely not to be published while studies (spuriously) finding large negative effects on employment arepublished. 40

Min

imu

m w

ag

eR

ais

e T

he

APPENDIX: Beneficiaries of Increasing the Minimum Wage

Characteristics of Minimum Wage Workers and Workers Affected by Increasing the Federal Minimum Wage

MinimumWage

Workers Affectedby Increase to

MinimumWage

Workers Affectedby Increase to

Workers $10.10 All Workers Workers $10.10 All Workers

% of All Workers 4.5% 21.4% 100.0% Family Structure

Married w/ kidsUnmarried w/ kids

Married w/o kids Unmarried w/o kids

Teenagers

12.7%9.0%

12.9%41.2%24.2%

16.3%10.0%17.4%44.2%12.1%

26.6%7.5%

27.4%35.1%3.4%

SexMale

Female42.1%57.9%

45.0%55.0%

51.5%48.5%

Family Income

Under $35,000$35k-$75k

$75k+

47.7%30.2%22.2%

45.5%32.1%22.4%

24.8%35.0%40.2%

AgeUnder 20 yrs old

Age 20-29Age 30-39Age 40-54

Age 55+

24.2%35.4%13.9%16.0%10.4%

12.1%37.0%16.7%20.6%13.6%

3.4%21.9%21.7%33.0%19.9%

Race/Ethnicity

White

Black

Hispanic

Asian

Other

52.3%13.0%27.6%4.7%2.4%

53.3%14.5%25.2%4.8%2.3%

65.0%11.2%16.2%5.8%1.8%

Source: Current Population Survey, outgoing rotation groups for December 2012 through November 2013. Minimum WageWorkers earn a wage within 25 cents above or below the federal minimum of $7.25. Affected workers earn a wagebetween 25 cents below the minimum and $10.10, deflated from 2016 dollars to 2013 dollars using CBO projections.Percentages may not sum to 100% within category due to rounding.

11

41

Ra

ise

Th

e

Min

imu

m w

ag

e

SETTING THE RECORD STRAIGHT ABOUT THE MINIMUM WAGE

42

Important note: all blue text is linked to the original source of information and is clickable. Click the blue text to be taken to the full articles and published research related to the myth

or fact being detailed by each slide

Ra

ise

Th

e

Min

imu

m w

ag

eM

INIM

UM

WA

GE

MYTH

BU

STERS

Myth about Minimum Wage Truth According to the US Department of Labor http://www.dol.gov/minwage/mythbuster.htm

Myth: Increasing the minimum wage will cause people to lose their jobs.

Not true: Minimum wage increases have little or no adverse effect on employment as shown in independent studies from economists across the country. Additionally, in a letter to the president and congressional leaders, leading economists point out that "in recent years there have been important developments in the academic literature on the effect of increases in the minimum wage on employment, with the weight of evidence now showing that increases in the minimum wage have had little or no negative effect on the employment ofminimum wage workers, even during times of weakness in the labor market

Myth: Increasing the minimum wage is bad for businesses.

Not true: Academic research has shown that higher wages sharply reduce employee turnover, which can reduce employment and training costs

Myth: Restaurant servers don't need to be paid the minimum wage since they receive tips.

Not true: An employer can pay a tipped employee as little as $2.13 per hour in direct wages, but only if that amount plus tips equal at least the federal minimum wage, and the worker retains all tips and customarily and regularly receives more than $30 a month in tips. Often, an employee's tips combined with the employer's direct wages of at least $2.13 an hour do not equal the federal minimum hourly wage. When that occurs, the employer must make up the difference. Some states have minimum wage laws specific to tipped employees. When an employee is subject to both the federal and state wage laws, he or she is entitled to the provisions of each law which provides the greater benefits.

Myth: Younger workers don't have to be paid the minimum wage.

Not true: While there are some exceptions, employers are generally required to pay at least the federal minimum wage. Exceptionsallowed include a minimum wage of $4.25 per hour for young workers under the age of 20, but only during their first 90 consecutive calendar days of employment with an employer, and as long as their work does not displace other workers. After 90 consecutive days of employment or the employee reaches 20 years of age, whichever comes first, the employee must receive the current federal minimumwage or the state minimum wage, whichever is higher. There are programs requiring federal certification that allow for payment of less than the full federal minimum wage, but those programs are not limited to the employment of young workers.

Myth: Small business owners can't afford to pay their workers more, and therefore don't support an increase in the minimum wage.

Not true: A recent survey conducted for the Small Business Majority found that more than two-thirds of small business owners support increasing the current federal minimum wage, and adjusting it yearly to keep pace with inflation as President Obama has proposed. The survey also found that 85 percent of the poll respondents already pay all of their workers more than the current federal minimum wage.

Myth: The minimum wage stays the same if Congress doesn't change it.

False: While it is technically accurate to say that employers have been required to pay the current federal minimum wage of $7.25 per hour since 2009, as the department's former chief economist, Betsey Stevenson, recently explained in The Washington Post, that wage isn't the same today as it was four years ago. "Congress sets the minimum wage in nominal dollars, so it doesn't keep pace with inflation. Because the cost of living is always rising, the value of a new minimum wage begins to fall from the moment it is set," she wrote. "In fact, today's minimum wage of $7.25 buys less than the minimum wage did through all of the 1960s, 1970s and much of the 1980s. Although theminimum wage has been raised 22 times since it was established, those increases are needed to restore its inflation-eroded value back to its earlier real level."

Myth: Raising the minimum wage will only benefit teens.

Not true. The typical minimum wage worker is not a high-school student earning weekend pocket money. In fact, less than 20 percent of those who would benefit from a federal minimum wage increase are teenagers, and 60 percent are women. Plus, those workers whowould benefit from a minimum wage increase brought home 46 percent of their household's wage and salary income in 2011.

Myth: Raising the federal minimum wage won't benefit workers in states where the hourly minimum rate is already higher than the federal minimum.

Not true. Only 19 states and the District of Columbia have a minimum wage higher than the federal minimum, meaning a majority of states have an hourly minimum rate at or below the federal minimum. According to an analysis from the White House Council of Economic Advisors, increasing the federal minimum wage will boost the earnings for some 15 million low-wage workers nationwide. That includes workers in those states already earning above the current federal minimum. Raising the federal minimum wage is an important piece of our overall economic recovery. A raise for minimum wage earners will put more money in more families' pockets, which will be spent on goods and services, stimulating economic growth locally and nationally.

43

http://www.dol.gov/minwage/mythbuster.htm

Ra

ise

Th

e

Min

imu

m w

ag

eM

YTH: I N

CR

EASIN

GT

HE

MIN

IMU

MW

AG

EK

ILLSJ O

BS

MYTH: Increasing The Minimum Wage Irrefutably Kills Jobs

Stephen Moore: Minimum Wage Hike "The Worst Idea Of All" In President's Speech, Because Unemployment Is Already High. Appearing on the February 13 edition of Fox News' Your World with Neil Cavuto, Wall Street Journal editorial board member

Stephen Moore said:

You didn't even mention the worst idea of all, which is raising the minimum wage when we already have an effective-- we have a 14 percent unemployment rate in this country. [Fox News, Your World with Neil Cavuto, 2/13/13]

The Washington Times: "Mandated Minimum Wage Hikes Often Lead To Massive Job Loss." From The Washington Times: "President Obama's push to hike the minimum wage from $7.25 per hour to $9 per hour may sound good to minimum wage

earners, but business owners and economic analysts aren't applauding. History shows that mandated minimum wage hikes often lead to massive job loss." [The Washington Times,2/13/13]

Karl Rove: "Raising The Minimum Wage To $9 An Hour Would Actually Cost Jobs." In his Wall Street Journal column the day after the State of the Union address, Rove wrote: "Nevertheless, the president's suggestions won't spur job creation and economic

growth. His proposals were liberal, stale, unfocused and often counterproductive. For example, raising the minimum wage to $9 an hour would actually cost jobs." [The Wall Street Journal, 2/13/13]

See the facts from Harvard, Princeton and Berkeley Economist that say otherwise

44

Ra

ise

Th

e

Min

imu

m w

ag

e

FAC

T: STU

DIES

SU

GG

ESTM

INIM

UM

WA

GE

I NC

REA

SES

DO

N' T

KILL

J OB

S, AN

DM

AY

I NC

REA

SEH

IRIN

GFACT: Numerous Studies Suggest Minimum Wage Increases Don't Kill Jobs, And May Even Increase Hiring

CEPR: Hiring Response To Minimum Wage Hikes "More Likely To Be Positive Than Negative." In a March 2011 report, the Center for Economic and Policy Research concluded that wage increases are more likely to result in more, rather than fewer, jobs:

Our estimated employment responses generally cluster near zero, and are more likely to be positive than negative. Few of our point estimates are precise enough to rule out either positive or negative employment effects, but statistically significant positive employment responses

outnumber statistically significant negative elasticities. [Center for Economic and Policy Research, March 2011]

CEPR: No "Discernible Impact" On Current Minimum-Wage Workforce From Increases. In a March 2011 report, the Center for Economic and Policy Research found that raising the minimum wage has no "discernible impact" on employment:

"The results for fast food, food services, retail, and low-wage establishments in San Francisco and Santa Fe support the view that a citywide minimum wages can raise the earnings of low-wage workers, without a discernible impact on their employment. Moreover, the lack of an employment response held for three full years after the implementation of the measures, allaying concerns that the shorter time periods

examined in some of the earlier research on the minimum wage was not long enough to capture the true disemployment effects." [Center for Economic and Policy Research, March 2011]

Multiple Studies Found Either No Effect On Employment Or An Increase In Employment Resulting From Minimum Wage Increases. From the Center for American Progress:

University of California, Berkeley, economist David Card and Princeton economist Alan Krueger's seminal study of the

effect of the New Jersey 1992 minimum wage increase comparing fast food industry employment in New Jersey and Pennsylvania found no negative employment effect. In fact, it found stronger employment growth in New Jersey. While there was no national recession at the time,

New Jersey's unemployment rate was 8.7 percent in parts of 1992.

Similarly, Lawrence F. Katz, a Harvard economist, and Alan Krueger studied fast food employment in Texas from 1990 to 1991 and

found that employment slightly increased when the minimum wage was raised. The study included a 1990 minimum wage increase that occurred just before the 1990-1991 recession and a second increase that occurred just after the recession officially ended.

Moreover, David Card's study of the impacts on teen employment of the 1990 federal minimum wage increase using state-level data found no effect on teen employment. Most of the time period he studied included the 1990-1991 recession. [Center for American Progress Action

Fund, 6/7/11]

Researchers Found "No Employment Effects Of Minimum Wage Increases" In Adjacent Counties In Neighbor States With Differing Minimum Wages. In a 2010 peer-reviewed article, UC-Berkeley's Arindrajit Dube, T. William Lester, and Michael Reich found that higher minimum wages

did not hurt employment in the restaurant industry, and argued that their results were likely to hold up in other employment sectors:

In this paper, we use a local identification strategy that takes advantage of all minimum wage differences between pairs of contiguous counties.

For cross-state contiguous counties, we find strong earnings effects and no employment effects of minimum wage increases.

This result suggests that minimum wage increases do raise the overall earnings at these jobs, although there may be differential effects by demographic groups due to labor-labor substitution.

This evidence suggests that our findings are relevant beyond the restaurant industry." [Institute for Research on Labor and Employment, UC Berkeley, 11/30/10, via eScholarship.org]

45

Ra

ise

Th

e

Min

imu

m w

ag

e

FAC

T: RESEA

RC

HS

UG

GESTS

MIN

IMU

MW

AG

EIN

CR

EASES

DO

NO

TH

UR

TT

EENE

MP

LOYM

ENT

FACT: Research Suggests Minimum Wage Increases Do Not Hurt Teen Employment

Economic Policy Institute: "The Warnings Of Massive Teen Job Loss Due To Minimum Wage Increases Simply Do Not Comport With The Evidence." In a November 25, 2009, post, the Economic Policy Institute found that teen employment is affected more by broad economic trends, like a recession, rather than changes in the minimum wage:

This observation is consistent with what careful empirical studies have found. While it is true that there is some disagreement among economists about whether increasing the minimum wage increases or decreases employment, there is a consensus on the essential point: the impact of a minimum wage raise on jobs, whether positive or negative, is small. The warnings of massive teen job loss due to minimum wage increases simply do not comport with the evidence. [Economic Policy Institute, 11/25/09]

University Of California: Minimum Wage Has Nothing "But Very Small Disemployment Effects" On Teen Employment. A June 2010 report by University of California-Berkeley's Institute for Research on Labor and Employment (IRLE) studying the effects of minimum wage increases on teen employment using a broad array of control variables found:

Including controls for long-term growth differences among states and for heterogeneous economic shocks renders the employment and hours elasticities indistinguishable from zero and rules out any but very small disemployment effects. Dynamic evidence further shows the nature of bias in traditional estimates, and it also rules out all but very small negativelong-run effects. [Institute for Research on Labor and Employment, UC Berkeley, 6/21/10]

46

Ra

ise

Th

e

Min

imu

m w

ag

eM

YTH: M

INIM

UM

WA

GE

HIK

ESH

UR

TS

MA

LLB

USIN

ESSES

47

MYTH: Minimum Wage Hikes Hurt Small Businesses

Gretchen Carlson: Raising Minimum Wage May Be "Bad For Small Businesses." On the February 13 edition of Fox & Friends, co-host Gretchen Carlson claimed "[Obama] also wants to increase minimum wage, and of course, that would be great for people who are working at those jobs, but possibly bad for

small businesses who have to pay higher wages." [Fox News, Fox & Friends, 2/13/13, via Media Matters]

Andrea Tantaros: Increasing The Minimum Wage "Would Crush Businesses." On the February 13 edition of Fox News' The Five, co-hosts Eric Bolling and Andrea Tantaros had the following exchange:

BOLLING: Andrea, let me ask you about this: The minimum wage, $9 an hour, he wants a 24 percent increase in the minimum wage.

TANTAROS: Which would crush businesses. [Fox News, The Five, 2/13/13]

Ra

ise

Th

e

Min

imu

m w

ag

e

FAC

T: MA

NY

STU

DIES

FIN

DM

INIM

UM

WA

GE

INC

REA

SES

DO

NO

TH

AR

MS

MA

LLB

USIN

ESSES

48

FACT: Many Studies Find Minimum Wage Increases Do Not Harm Small Businesses

Center For American Progress: Data Show States With Increased Minimum Wage Had Higher Small Business Job Growth. A 2006 joint study by the Center for American Progress and Policy Matters Ohio compared small business performance between states using the federal minimum wage and states that had

a higher minimum wage, and found that employment in small businesses grew more in states with a higher minimum wage. [Center for American Progress, May 2006]

Fiscal Policy Institute: "Indicators Of Economic Performance Were Consistently Better" In Higher Minimum Wage States For Small Business Job Growth. According to the Fiscal Policy Institute:

In examining state-level small business job growth, the best government data available permits a comparison of 1998 and 2003; the latter is the most recent year for which the data are available. For the 10 states and the District of Columbia that had set their minimum wages above the federal level for most of this period, indicators of economic performance were consistently better than for the other 40 states where the federal minimum wage of $5.15 an hour

prevailed. [Fiscal Policy Institute, 3/30/06]

NYTimes: Small Business Owners In A State With Higher Minimum Wage "Have Prospered Far Beyond Their Expectations." According to The New York Times:

Just eight miles separate this town on the Washington side of the state border from Post Falls on the Idaho side. But the towns are nearly $3 an hour apart in the required minimum wage. Washington pays the highest in the nation, just under $8 an hour, and Idaho has among the lowest, matching 21 states that

have not raised the hourly wage beyond the federal minimum of $5.15.

Nearly a decade ago, when voters in Washington approved a measure that would give the state's lowest-paid workers a raise nearly every year, many business leaders predicted that small towns on this side of the state line would suffer.

But instead of shriveling up, small-business owners in Washington say they have prospered far beyond their expectations. In fact, as a significant increase in the national minimum wage heads toward law, businesses here at the dividing line between two economies -- a real-life laboratory for the debate -- have

found that raising prices to compensate for higher wages does not necessarily lead to losses in jobs and profits.

Idaho teenagers cross the state line to work in fast-food restaurants in Washington, where the minimum wage is 54 percent higher. That has forced businesses in Idaho to raise their wages to compete.

Business owners say they have had to increase prices somewhat to keep up. But both states are among the nation's leaders in the growth of jobs and personal income, suggesting that an increase in the minimum wage has not hurt the overall economy.

"We're paying the highest wage we've ever had to pay, and our business is still up more than 11 percent over last year," said Tom Singleton, who manages a Papa Murphy's takeout pizza store here, with 13 employees. [The New York Times, 1/11/07]

Ra

ise

Th

e

Min

imu

m w

ag

e

FAC

T: MA

NY

STU

DIES

FIN

DM

INIM

UM

WA

GE

INC

REA

SES

DO

NO

TH

AR

MS

MA

LLB

USIN

ESSES

49

FACT: Many Studies Find Minimum Wage Increases Do Not Harm Small Businesses

Center For American Progress: Data Show States With Increased Minimum Wage Had Higher Small Business Job Growth. A 2006 joint study by the Center for American Progress and Policy Matters Ohio compared small business performance between states using the federal minimum wage and states that had

a higher minimum wage, and found that employment in small businesses grew more in states with a higher minimum wage. [Center for American Progress, May 2006]

Fiscal Policy Institute: "Indicators Of Economic Performance Were Consistently Better" In Higher Minimum Wage States For Small Business Job Growth. According to the Fiscal Policy Institute:

In examining state-level small business job growth, the best government data available permits a comparison of 1998 and 2003; the latter is the most recent year for which the data are available. For the 10 states and the District of Columbia that had set their minimum wages above the federal level for most of this period, indicators of economic performance were consistently better than for the other 40 states where the federal minimum wage of $5.15 an hour

prevailed. [Fiscal Policy Institute, 3/30/06]

NYTimes: Small Business Owners In A State With Higher Minimum Wage "Have Prospered Far Beyond Their Expectations." According to The New York Times:

Just eight miles separate this town on the Washington side of the state border from Post Falls on the Idaho side. But the towns are nearly $3 an hour apart in the required minimum wage. Washington pays the highest in the nation, just under $8 an hour, and Idaho has among the lowest, matching 21 states that

have not raised the hourly wage beyond the federal minimum of $5.15.

Nearly a decade ago, when voters in Washington approved a measure that would give the state's lowest-paid workers a raise nearly every year, many business leaders predicted that small towns on this side of the state line would suffer.

But instead of shriveling up, small-business owners in Washington say they have prospered far beyond their expectations. In fact, as a significant increase in the national minimum wage heads toward law, businesses here at the dividing line between two economies -- a real-life laboratory for the debate -- have

found that raising prices to compensate for higher wages does not necessarily lead to losses in jobs and profits.

Idaho teenagers cross the state line to work in fast-food restaurants in Washington, where the minimum wage is 54 percent higher. That has forced businesses in Idaho to raise their wages to compete.

Business owners say they have had to increase prices somewhat to keep up. But both states are among the nation's leaders in the growth of jobs and personal income, suggesting that an increase in the minimum wage has not hurt the overall economy.

"We're paying the highest wage we've ever had to pay, and our business is still up more than 11 percent over last year," said Tom Singleton, who manages a Papa Murphy's takeout pizza store here, with 13 employees. [The New York Times, 1/11/07]

Ra

ise

Th

e

Min

imu

m w

ag

e

MYTH

: WE'V

EA

LREA

DY

RA

ISEDT

HE

MIN

IMU

MW

AG

E

EN

OU

GH

50

MYTH: We've Already Raised The Minimum Wage Enough

Nicole Petallides: The Minimum Wage "Really Has Grown Exponentially" In Recent Years. On the February 14 edition of Fox & Friends, Fox Business correspondent Nicole Petallides said:

As you continue to raise the minimum wage, which was $5.15 back in 2007, so it really has grown exponentially, we've had on on the Fox Business Network, small business owners, franchise owners, who talk about the fact that (a) they just won't be hiring as much, (b) that if they have to go from $7.25 up to nine

bucks, then the nine-dollar employees are gonna say hey, how come this inexperienced young worker is making what I'm making and I want a raise, too. [Fox News, Fox & Friends, 2/14/13]

Elizabeth MacDonald: The Minimum Wage Jumped 41 Percent In Three Years From 2007 To 2009. In her FoxBusiness.com column, network correspondent Elizabeth MacDonald wrote:

For the 10-year period from 1997 to 2007, the minimum wage was $5.15 per hour. Congress raised it to $5.85 in 2007, then again to $6.55 in 2008 and finally to $7.25 in 2009. That means over that three-year span, businesses who rely on minimum-wage workers saw their labor costs jump 41%, right as the

economic crackup began. [FoxBusiness.com, 2/13/13]

Ra

ise

Th

e

Min

imu

m w

ag

eFA

CT: M

INIM

UM

WA

GE

GR

OW

THH

AS

LA

GG

EDIN

FLATIO

N

51

FACT: Minimum Wage Growth Has Lagged Inflation, Leaving Minimum Wage Earners With Far Less Purchasing Power Today Than Previous Decades

Despite Tripling In Nominal Value, The Federal Minimum Wage Has Actually Fallen 20 Percent In Real, Inflation-Adjusted Terms. From Bloomberg:

Workers in the U.S. earning the minimum wage are worse off now than they were four decades ago.

The CHART OF THE DAY shows that after adjusting for inflation, the federal minimum wage dropped 20 percent from 1967 to 2010, even as the nominal figure climbed to $7.25 an hour from $1.40, a 418 percent gain.

[Bloomberg, 12/28/11]

Prior To Increases Beginning In 2007, Minimum Wage Had Lost Over 40 Percent Of Its Purchasing Power. From Bloomberg:

The decline would have been worse if not for increases that took place from 2008 through 2010 in how much employers were legally obligated to pay. Combined with more stable consumer prices, those adjustments helped trim the reduction in earnings from 41 percent at the end of 2007, following a

decade of no change in minimum pay. [Bloomberg, 12/28/11]

If The Minimum Wage Reflected Increases In Worker Productivity, It Would Be Nearly $22 Per Hour.Citing a study done by the Center for Economic and Policy Research, The Huffington Post explained that the current minimum wage lags far behind what it should be after accounting for productivity increases.

From The Huffington Post:

The minimum wage should have reached $21.72 an hour in 2012 if it kept up with increases in worker productivity, according to a March study by the Center for Economic and Policy Research. While advancements in technology have increased the amount of goods and services that can be produced in a

set amount of time, wages have remained relatively flat, the study points out. [The Huffington Post, 2/13/13]

Working 40 Hours Per Week At An Hourly Rate Of $10.65, A Single Parent With Three Dependents Would Still Be Below The Poverty Line. A September 2011 CNNMoney article noted that even if the minimum wage were above President Obama's proposed $9 an hour rate, it would fail to lift families out of

poverty. From CNNMoney:

About 20% of American adults who have jobs are earning only $10.65 an hour or less, according to [economics professor Paul] Osterman's analysis. Even at 40 hours a week, that amounts to less than $22,314, the poverty level for a family of four. The federal minimum wage currently stands at $7.25 an hour (18

states set their own rates above the federal level, maxing out at $8.67 an hour in Washington State). But increases have not kept up with inflation. When adjusted for inflation, the highest federal minimum wage was in 1968, when it was the equivalent of $10.38 in today's dollars. [CNNMoney, 9/27/11]

Full-Time Employment At Present Federal Minimum Wage Would Not Keep A Single-Income Family Of Four Out Of Poverty. From the University of California at Davis' Center for Poverty Research:

The current federal minimum wage is $7.25 per hour. If a minimum wage worker is employed full-time (forty hours per week for 52 weeks), that worker would earn $15,080 annually.

In 2011, the poverty threshold for a single individual was $11,702 and the poverty threshold for a family of 4 with two children under 18 was $22,881.

Thus, a single full-time minimum wage worker has an income above the poverty threshold but if a full-time minimum wage worker is the sole source of income in a family of four, that family's income is only 66% of the amount required to meet its basic needs. [Center for Poverty Research UC Davis,

accessed 2/14/13, emphasis in original]

Ra

ise

Th

e

Min

imu

m w

ag

eM

YTH: O

NLY

TEEN

SE

AR

NM

INW

AG

E

52

MYTH: No One Expects To Live Off The Minimum Wage, It's Just For Teenagers

Stuart Varney: "We're Not Expecting People To Live On That. That's Not What The Minimum Wage Is For, For Heaven's Sake." From the February 13 edition of Fox Business' Varney & Company:

SCOTT PAGE (CEO, The Lifeline Program): No one making $9 an hour, that's $18,000 a year, how do you expect people to live right now on $14,000 a year with one child...?

STUART VARNEY (Host): You don't expect people to live -- We're not expecting people to live on that. That's not what the minimum wage is for, for heaven's sake. It's for people fresh out of high school getting their very very first job, it's not for guys in their forties and fifties. It's not for them. [Fox

Business, Varney & Company, 2/13/13]

The Washington Free Beacon: "Majority Of Minimum Wage Earners" Are Teenagers. From an article inThe Washington Free Beacon arguing against an increase in the minimum wage:

However, those 19 states boast some of the highest unemployment rates in the nation, especially among the teenagers who make up the majority of minimum wage earners. [The Washington Free Beacon, 2/14/13]

Ra

ise

Th

e

Min

imu

m w

ag

e

FAC

T: HA

LFO

FM

INIM

UM

WA

GE

EA

RN

ERS

AR

E2

5 O

RO

LDER,

REP

RESEN

TING

MILLIO

NS

OF

AD

ULT

WO

RK

ERS

53

FACT: Half Of Minimum Wage Earners Are 25 Or Older, Representing Millions Of Adult Workers

Most Minimum Wage Earners Are Adults, Not Teenagers. A December 26, 2010, (Eugene, OR) Register-Guard op-ed noted that the vast majority of those earning minimum wage are over the age of 20:

Even the claim that the minimum wage only affects teenagers looking for pocket change does not hold up. Most minimum wage earners are adults, many of whom support families on this income. Nationwide, three-quarters of minimum wage earners are 20 or older. [The Register-Guard, 12/26/10]

Economic Policy Institute: "Perception Of Minimum-Wage Workers As Primarily Teenagers" Is Unsupported By Facts. In a report on a prospective increase in the federal minimum wage to $9.80/hour in 2014, EPI found that 87.9 percent of the workers affected nationwide are age 20 or older:

Minimum-wage workers are older and, as discussed later, have greater family responsibilities than commonly portrayed. The facts do not support the perception of minimum-wage workers as primarily teenagers working for spending money (though even if true, it would not justify paying teens

subpoverty wages).

Instead, as seen in Figure C, 87.9 percent of workers who would be affected by increasing the federal minimum wage to $9.80 are at least 20 years old. This share varies from a low of 77.1 percent in Massachusetts to 92.4 percent in Florida (and 93.9 percent in the District of Columbia). Thus, in every state, more

than three-fourths of workers who would be affected are at least 20 years old.[Economic Policy Institute, 8/14/12]

Bureau Of Labor Statistics: 50.5 Percent Of Minimum Wage Earners In 2011 Were 25 Years And Over In Age. According to the Bureau of Labor Statistics for 2011, just over half of all workers paid at or below the federal minimum wage were aged 25 and above, representing 1,933,000 people. [BLS.gov,

accessed 2/14/13]

FACT: Less Than A Quarter Of Minimum Wage Earners Are Younger Than 20

BLS: 16-To-19-Year-Olds Represent Less Than One Quarter Of Those Working At Or Below The Federal Minimum Wage Since 2007. Below is a table based on Bureau of Labor Statistics data on the demographic breakdown of workers earning the federal minimum wage or below, showing that workers younger than 20 years old have comprised less than a quarter of all such workers from 2007 to the present, and were between 25 and 30 percent of all such workers in prior years.