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This document discusses the unintended consequences of blanket minimum wage increases and argues that targeted approaches are better. It notes that less than 25% of funds from minimum wage hikes go to low-income households, and that such hikes have little impact on poverty. Minimum wage increases can also lead to job losses, especially among young and unskilled workers, higher prices, and reduced employment growth. The document recommends targeted approaches like a separate minimum wage for teenagers to protect job opportunities for youth and allow them to gain work experience. It also suggests guaranteeing total compensation for front-of-house and back-of-house restaurant staff.

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85 views1 page

Infographic

This document discusses the unintended consequences of blanket minimum wage increases and argues that targeted approaches are better. It notes that less than 25% of funds from minimum wage hikes go to low-income households, and that such hikes have little impact on poverty. Minimum wage increases can also lead to job losses, especially among young and unskilled workers, higher prices, and reduced employment growth. The document recommends targeted approaches like a separate minimum wage for teenagers to protect job opportunities for youth and allow them to gain work experience. It also suggests guaranteeing total compensation for front-of-house and back-of-house restaurant staff.

Uploaded by

api-362656050
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as PDF, TXT or read online on Scribd
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ECONOMIC STUDIES AFFIRM

The Need for Targeted Minimum Wage Increases

Blanket Minimum Wage Increases Dont Help the Intended Workers:

Less than one in four dollars


will actually benefit low income
4.3%
households.1 A recent economic of the workforce earns
study found that blanket minimum wage
minimum wage increases

have little impact,


if any, on poverty.2
More than 50% are between the ages of 1624.3

Minimum wage increases create unintended consequences


for the very workers they seek to help:
Increased Prices Cut Hours Job Loss Automation Reduced Slowed Employment
Opportunities Growth

$$
Raises the wages at the bottom of the
wage ladder and increases costs along
30% of job losses
$$ $$ are to workers without a high school
the ladder, doubling
the labor diploma1disproportionally displacing
cost impact for employers.1 $$ $$ $$
young and unskilled workers that most
need access to entry-level jobs.

Targeted mitigations are a strategic Protect the


Wage Ladder
policy solution that benefit all: that Rewards

Total compensation creates income A teen wage


equality between highly compensated front-of- helps protect job access for young, Skills
house and heart-of-house workers.4 unskilled workers that teach the
skills needed to succeed.5

of heart-of-house Longevity
70% workers are Latinos1 Leadership

Responsibility Experience
CAs tipped workers average $12.57/hr in tips,
Teamwork
making their hourly wage well above heart-of-
house staff such as dishwashers and cooks.4

SOURCE CITED
1) Beacon Economics, A Cost-Benefit Analysis of the Los Angeles City Minimum Wage Proposal March 2015.
2) Los Angeles Economic Development Corporation, Considering Minimum Wage Policy in Los Angeles County: Reviewing Recent Research and Assessing Potential Implications June 2015.
3) PEW Research Center Who Makes Minimum Wage September 2014.
4) Capital Matrix Consulting, Estimating Hourly Tip Income for Waiters and Waitresses in Full-Service Restaurants in California March 2015.
5) Brookings Institute, The Plummeting Labor Market Fortunes of Teens and Young Adults, March 2014

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