The Philadelphia Jewish Voice
Follow PJVoice on Twitter
IsraelArtCommunityJudaism FoodNetworking

10 States To Increase Minimum Wage On New Year's Day

by: Contributing Writer

Sat Dec 29, 2012 at 19:03:46 PM EST



— by Keystone Research Center

HARRISBURG, PA - The minimum wage will increase in 10 states on Jan. 1, modestly boosting the incomes of nearly 1 million low-paid workers in Arizona, Colorado, Florida, Missouri, Montana, Ohio, Oregon, Rhode Island, Vermont, and Washington.

The minimum wage rates in those states will rise between 10 and 35 cents per hour, resulting in an extra $190 to $510 per year for the average directly-affected worker. Rhode Island's minimum wage will rise as a result of a law signed by Gov. Lincoln Chafee in June; the remaining nine states will raise their minimum wages in accordance with state laws requiring automatic annual adjustments to keep pace with the rising cost of living.

More after the jump.

Contributing Writer :: 10 States To Increase Minimum Wage On New Year's Day
Pennsylvania minimum-wage workers haven't seen a meaningful increase since 2007, during which time the buying power of the minimum wage has fallen 10%, said Dr. Stephen Herzenberg, an economist with the Keystone Research Center. A minimum wage increase that would boost consumer spending is especially needed because of Pennsylvania's recent lagging job-growth performance. Pennsylvania also needs a minimum-wage hike because it is among the states with the fast-growing income inequality.

Herzenberg also recommended that the state's minimum wage be set to increase automatically each year to offset the impact of inflation, as Pennsylvania legislator salaries already do.

In the 10 states with minimum wage increases already on the books, the hikes will boost consumer spending, hence GDP, by over $183 million, according to an analysis by the Economic Policy Institute. While weak consumer demand continues to hold back business expansion, raising the minimum wage puts more money in the pockets of low-wage workers who often have no choice but to immediately spend their increased earnings on basic expenses.


We need policies that make sure workers earn wages that will at the very least support their basic needs, said Christine Owens, executive director of the National Employment Law Project. But earning an income that meets basic needs shouldn't depend on the state where a working family lives. We need to raise and index the federal minimum wage to help all of America's workers.

The 10 state-level minimum wage increases scheduled for Jan. 1 will benefit a total of 995,000 low-paid workers: approximately 855,000 workers will be directly affected as the new minimum wage rates will exceed their current hourly pay, while another 140,000 workers will receive an indirect raise as pay scales are adjusted upward to reflect the new minimum wage, according to the Economic Policy Institute. Seventy-one percent of these low-wage workers are adults over the age of 20, and 69 percent work 20 hours per week or more.

As of Jan. 1, 2013, 19 states plus the District of Columbia will have minimum wage rates above the federal level of $7.25 per hour, which translates to just over $15,000 per year for a full-time minimum wage earner. Ten states also adjust their minimum wages annually to keep pace with the rising cost of living - a key policy reform known as "indexing" - to ensure that real wages for the lowest-paid workers do not fall even further behind: these states include Arizona, Colorado, Florida, Missouri, Montana, Nevada, Ohio, Oregon, Vermont, and Washington. Nevada has not scheduled a cost-of-living adjustment to take effect this year.

Because the federal minimum wage is not indexed to rise automatically with inflation, its real value erodes every year unless Congress approves an increase. Without further action from Congress, the current federal minimum wage of $7.25 per hour will lose nearly 20 percent of its real value over the next 10 years and have the purchasing power of only $5.99 in today's dollars, according to a new data brief by the National Employment Law Project. The federal minimum wage would be $10.58 today if it had kept pace with the rising cost of living since its purchasing power peaked in 1968.


Rhode Island is this year's greatest minimum wage raiser

The Fair Minimum Wage Act of 2012, introduced in July by U.S. Senator Tom Harkin and Representative George Miller, would help recover much of this lost value by raising the federal minimum wage to $9.80 by 2014 and adjusting it annually to keep pace with the cost of living in subsequent years. The Fair Minimum Wage Act would also raise the minimum wage for tipped workers from its current rate of just $2.13 per hour, where it has been frozen since 1991, to $6.85 over five years. Thereafter, it would be fixed at 70 percent of the full minimum wage.

A large body of research shows that raising the minimum wage is an effective way to boost the incomes of low-paid workers without reducing employment. A groundbreaking 1994 study by David Card and Alan Krueger, current chair of the White House Council of Economic Advisers, found that an increase in New Jersey's minimum wage did not reduce employment among fast-food restaurants. These findings have been confirmed by 15 years of economic research, including a 2010 study published in the Review of Economics and Statistics that analyzed data from more than 500 counties and found that minimum wage increases did not cost jobs. Another recent study published in April 2011 in the journal Industrial Relations found that even during times of high unemployment, minimum wage increases did not lead to job loss.

A recent report by the National Employment Law Project found that 66 percent of low-wage employees work for large companies, not small businesses, and that more than 70 percent of the biggest low-wage employers have fully recovered from the recession and are enjoying strong profits. An August NELP study showed that while the majority of jobs lost during the recession were in middle-wage occupations, 58 percent of those created in the post-recession recovery have been low-wage occupations. That shift towards low-wage jobs is a 30-year trend that is only accelerating, according to a recent report by the Center for Economic and Policy Research.

Tags: , , , , , , , , , , , , , (All Tags)
Print Friendly View Send As Email

About

The Philadelphia Jewish Voice is an online non-profit volunteer based community newspaper serving the Philadelphia Jewish Community since 2005. We are dedicated to addressing the important social, political and cultural issues facing our community in a spirit of honesty, integrity and diversity.


Copyright

© 2013. Permission is hereby granted to redistribute these articles therein in their full original form provided these same rights are conveyed to the reader and subscription information to The Philadelphia Jewish Voice is provided. Subscribers should be directed to http://www.pjvoice.com/Subscribe.htm.


Donations

Your tax-deductible donations will help give Voice to the Greater Philadelphia Jewish Community.

To pay by credit card or paypal, click here:

or send a check to: Eric Smolen, Treasurer, The Philadelphia Jewish Voice, 327 Pembroke Road, Bala Cynwyd, PA 19004

The Philadelphia Jewish Voice is organized pursuant to Pennsylvania's non-profit corporation law. We have tax-exempt status under IRS Code Section 501(c)(3). Contributions are tax-deductible to the fullest extent of the law.

For more information about the Philadelphia Jewish Voice visit GuideStar.

Menu

Make a New Account

Username:

Password:



Forget your username or password?


• Donate
• About PJVoice
• Free Subscription
• Advertise
• Back issues
• Authors and Board Members
• Help

Upcoming Events
• Add Event
• Monthly Calendar

Apr 23: Film & Discussion: Rescue in the Philippines
Apr 24: NCJW: Philadelphia Sinfonia Concert
Apr 27: Memorial for the Six Million Jewish Martyrs
Apr 27: Music & Comedy at the Klein JCC
Apr 27: Freud, Moses and the Holocaust
Apr 27: Yom Hashoah: Tragedy & Memory in America
Apr 27: A Musical Approach to Spiritual Direction
Apr 28: Yom HaShoah: Transcending Trauma
May 04: TBH–BE Community Heath Fair
May 04: Jewish Relief Agency Food Distribution
May 04: Camp Galil Spring Open House
May 04: CBH Film Festival - Stories of Heroism
May 07: Noontime Conversation: Israel & Azerbaijan
May 08: Jackie Robinson: Outsider Hero
May 11: Classics & Crackerjacks: The Sandlot
May 13: Free Career Expo
May 13: Last day to request PA absentee ballot
May 14: Visites guidées du NMAJH
May 15: JAFCO Honors Northeast Chapter Founders
May 16: PA Deadline for vote civilian absentee ballots
May 18: Lag B'Omer
May 18: Israel 66: Israel Independence Day Festival
May 20: Pennsylvania Primary Election
May 20: Volunteers for Israel Meeting
May 28: Baseball in America Today
May 29: Philadelphia Phillies Jewish Heritage Night
Jun 03: Tzedek Tzedek Tirdof: US Jews & Social Justice
Jun 04: Shavuot
Jun 05: Shavuot
Jun 08: Jewish Relief Agency Food Distribution
Jun 08: Classics & Crackerjacks: Rookie of the Year
Jun 10: Tzedek, Tzedek, Tirdof: USJews & Social Justice
Jun 11: Visites guidées du NMAJH
Jun 11: Dreamers and Doers: Kim Ng
Jun 12: Stroke Awareness
Jun 15: Chasing Dreams Family Fun Day
Jun 17: Tzedek Tzedek Tirdof: US Jews &Social Justice
Jun 24: Tzedek Tzedek Tirdof: US Jews &Social Justice
Jul 09: Visites guidées du NMAJH
Jul 09: Classics & Crackerjacks: The Natural
Jul 13: Volunteer at JRA Food Distribution
Jul 13: Classics & Crackerjacks: The Bad News Bears
Jul 15: Fast of the 17th of Tammuz
Jul 16: Classics & Crackerjacks: Bull Durham
Jul 23: Classics & Crackerjacks: A League of Their Own
Jul 30: Classics & Crackerjacks: Field of Dreams
Aug 04: Fast of the Tisha b'Av
Aug 10: Classics & Crackerjacks: The Sandlot
Aug 13: Visites guidées du NMAJH
Aug 13: Visites guidées du NMAJH


Advertisements

Help Victims of Typhoon Haiyan:

Support the Philadelphia Jewish Voice

Recent Comments



Powered by: SoapBlox