BY MICHAEL REICH, SYLVIA A. ALLEGRETTO AND CLAIRE MONTIALOUX ON JANUARY 11, 2017
– CENTER ON WAGE AND EMPLOYMENT DYNAMICS, FEATURED RESEARCH, MINIMUM WAGE & LIVING WAGE
We present here an analysis of the pay and employment effects of the scheduled minimum wage increases to $15 by 2023 in California as a whole and in Fresno County, one of the poorest areas in the state.
Critics of minimum wage increases often cite factors that will reduce employment, such as automation or reduced sales, as firms raise prices to recoup their increased costs. Advocates often argue that better-paid workers are less likely to quit and will be more productive, and that a minimum wage increase positively affects jobs and economic output as workers can increase their consumer spending. Here we take into account all of these often competing factors to assess the net effects of the policy.