CBO also examined a smaller change that would increase the federal minimum wage from $ per hour to $ on July 1, , and to $ on July 1, The mini- mum cash wage for tipped workers would increase when the minimum wage increased, and by the same percent- age. REPORT: A Minimum Wage Increase Would Kill , Jobs — But Lift The CBO said in its report that there is a great deal of uncertainty. You wouldn't know it from the headlines, but on almost every issue in dispute, yesterday's Congressional Budget Office (CBO) report on the.


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CBO: Minimum Wage Hike Could Boost Paychecks – And Cut Jobs

Here they essentially took the midpoint. There have been a number of solid studies done in recent years finding no job loss.


CBO itself did not rule out this possibility. However, there have also been cbo minimum wage, most notably by David Neumark and William Wascher, finding that the minimum wage does cost jobs.

CBO: Minimum Wage Hike Could Boost Paychecks – And Cut Jobs : The Two-Way : NPR

In this case, it appears that CBO picked a number between the findings of these two sets of studies in putting outas their best guess for a job loss figure.

At first blush, the prospect of losing cbo minimum wage, jobs sounds pretty bad, but that is not quite what this number implies. First, let's look at all cbo minimum wage disputes where the CBO accepted the numbers and the reasoning of supporters.

The minimum wage will directly affect tens of millions of workers. Opponents of the minimum wage like to cite Bureau of Labor Statistics BLS numbers that suggest that there are only about 1.

Assessing Those CBO Numbers on the Minimum Wage

CBO, instead, estimates cbo minimum wage about The CBO estimate of the total direct beneficiaries is almost identical to the The minimum wage will indirectly raise the wages of millions more.

Opponents downplay "spillover" cbo minimum wage of the minimum wage, that is, they say that the minimum wage is unlikely to have any impact on the wages of workers earning above the federal floor. The CBO, however, estimates that about 8.

The beneficiaries of a minimum-wage increase are overwhelmingly not teenagers.

Opponents argue that the typical minimum wage worker is a suburban teenager. But no job loss was observed. Indeed, relative to eastern Pennsylvania, fast-food jobs increased slightly.

CBO and the Minimum Wage | CEPR Blog | CEPR

Partly because fast food joints raised prices to cover the increased cost of hiring; partly because a higher minimum wage meant less turnover, and therefore fewer resources diverted to hiring; and partly because a higher minimum attracted cbo minimum wage employees or perhaps motivated the same employees to become better.

Does that mean a minimum-wage increase will never eliminate jobs?


Of course not, says Katz. Darlene Handy of Baltimore holds up a banner at a rally supporting a pay measure in Maryland. More than 20 cbo minimum wage have raised minimum pay rates above the federal level.

And yes, you're right:

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