The study is the first comprehensive look at the effects of these new policies. Two very different results. The Seattle Minimum Wage Study, a study supported and funded in part by the Seattle city government, is out with a new NBER paper evaluating Seattle’s minimum wage increase to $13 an hour and it finds significant dis-employment effects that on net reduce the incomes of minimum wage workers. Seattle’s Minimum Wage Experience 2015 -16 3 PART 1 INTRODUCTION Minimum wage policy in the U.S. has entered a new wave of state and local activity, in response to over a decade of inaction at the federal level. The minimum wage increases every year on January 1. Comparison of Seattle driver studies We examine the pay and hours of drivers working for transportation network companies (TNCs) in Seattle and propose a minimum driver compensation standard. 0 CONTACT: Critics argued that the UW study was not able to take into account the effects of a job boom in Seattle that did not occur in the rest of Washington State. 0}�i.�2����F� G�0n��^�`辟A8h�&A6H�{1pzr��```���8��4���8� ���\��Q � ;6�a Berkeley, CA – While this Labor Day marks a year of little or no wage gains for most U.S. workers, a new report from the University of California, Berkeley reveals good news for some low-wage workers. The new report casts further doubt on a 2017 University of Washington study that had found large negative employment effects when Seattle’s minimum wage increased to $13. The federal minimum wage remains $7.25, unchanged since 2009. Seattle was one of the first municipalities in the country to enact a gradual minimum-wage increase to $15 an hour. The researchers look at the food services industry, a major employer of low-wage workers, in Chicago, the District of Columbia, Oakland, San Francisco, San Jose, and Seattle. UC Berkeley takes issue with Seattle minimum wage study July 1, 2017 By Chris Reed 10 Comments In 2013, to shore up support for a plan to rapidly increase Seattle’s minimum wage, city leaders agreed to let a team of University of Washington researchers have access to troves of confidential payroll information … “We wanted to know if these higher minimum wages had their intended effect of increasing pay for low-wage workers and also if there was any effect on employment,” said Sylvia Allegretto, co-chair of CWED and a co-author of the report. IRLE connects world-class research with policy to improve workers’ lives, communities, and society. The federal minimum wage remains $7.25, unchanged … Reich was co-author of a study of Seattle’s minimum-wage hike released last week by UC Berkeley’s Institute for Research on Labor and Employment that reached much more upbeat conclusions about the Seattle experiment. The Minimum Wage Study is a research effort dedicated to providing rigorous analysis of the impact of minimum wage ordinances in metropolitan regions and states. Thornberg critiques the Berkeley study for basing our analysis on a state minimum wage of $13, rather than $14. endstream endobj startxref The minimum wages analyzed in the report reached much higher levels than any previous policies. The team of economists find significant pay increases and no significant employment reductions in the six cities. 1567 0 obj <>stream Two studies on minimum wage. March 2014 . The Fight for $15 campaigns that began in 2012 set a new wave of state and local minimum wage policies in motion. To distinguish the effects of the policies from other economic changes, the authors use state-of-the-art statistical methods and compare U.S. Bureau of Labor Statistics data on these cities with 173 metro counties across the U.S. that did not experience a minimum wage change. In 2014, Seattle already had the highest minimum wage in the country, $9.47 per hour. The Minimum Wage Ordinance sets wages for employees working within city limits. Are Minimum Wage Effects Greater in Low-Wage Areas. Center for the Study of Child Care Employment, Institute for Research on Labor and Employment, New York City’s Gig Driver Pay Standard: Effects on Drivers, Passengers, and the Companies. Similar policies are being considered in other cities and states across the country. h�b```��,@r#��X��だ ���#Ht�gG��p�t��(�QA�Ӆ^ȕ�J,���_.��� ��9��L���4��=j�H���+�k͊����5f;\�e7,2��l�Q�ڒ*nXl,+0�],+� GkƋ9W��hHs^�d;�&-yф 9g���Hs-�Ґ�89�Pl��Q����3^4M��R5���vH�Q�B���[j6� @�3�X�f �@�b��a�"8��-����f�耙 �$;%:(= �������X|�*�r� After expenses of $11.80, a driver nets $9.73 an hour, … Two weeks. In 2021 the California minimum wage for small businesses will be $13 an hour. A University of California—Berkeley study explored the effects of minimum wage hikes on the restaurant industry. They were slated to continue to rise — to $13 in Chicago and to $15 in the other five cities. David Ryder/Getty. I … We seek to provide insights that will be useful for policymakers and scholars. Critics argued that the UW study was not able to take into account the effects of a job boom in Seattle that did not occur in the rest of Washington State. endstream endobj 1534 0 obj <. The new minimum-wage law is raising pay for Seattle’s low-paid workers without hurting jobs, according to a report from economists at UC Berkeley. “When these minimum wage policies were being considered, some predicted that they would lead to significant job losses. Seattle is an optimal case study for how minimum wage … By the end of 2016 (the final year in the study), minimum wages had increased to $10.30 in San Jose, $10.50 in Chicago, $11.50 in the District of Columbia, $12.55 in Oakland and $13 in San Francisco and Seattle. Overall, the authors found no significant evidence of price increases associated with the minimum wage ordinance. By Casey Leins Staff Writer Sept. 7, 2018, at 4:44 p.m. Seattle (November 18, 2019) – Mayor Jenny A. Durkan and the City of Seattle announced today the start of a wage study that will collect and analyze data to determine a fair wage floor for Uber and Lyft drivers in the City of Seattle.The study follows Mayor Durkan’s proposal, submitted to City Council last month, mandating that Uber and Lyft drivers be paid at least minimum wage … Current gross driver hourly pay is approximately $21.53. 1533 0 obj <> endobj Today, ten large cities (Chicago, Los Angeles, Minneapolis, New York City, Oakland, Portland, San Francisco, San Jose, Seattle and Washington, DC), seven states (Arizona, California, Colorado, Massachusetts, New York, Oregon and Washington) and dozens of smaller cities and counties are phasing in minimum wages in the $12 to $15 range. Michael Reich . A UC Berkeley study that looked at the impact of Seattle’s minimum wage, for instance, relied on a sample of localities with stagnant minimum wage rates in recent years. Report prepared for the Seattle Income Inequality Advisory Committee . We did find that these cities’ minimum wage policies increased the earnings of low-wage workers, just as intended,” said Carl Nadler, co-author of the report. Several economists cautioned against leaping to conclusions about a study … Can Labor Market Policies Reduce Deaths of Despair? The Center on Wage and Employment Dynamics (CWED) is a project of the Institute for Research on Labor and Employment (IRLE) at UC Berkeley. Seattle’s trendsetting minimum-wage increases didn’t boost supermarket prices in the city in the two years after they began, according to a new study by University of Washington researchers. ��&� The city's law is raising the minimum to $15 for all businesses by 2021. The Berkeley study was produced by the same team that was behind a 2017 study that examined Seattle’s minimum wage increase, to $13 at the time, and found no job losses in the food service industry. %PDF-1.5 %���� Using a synthetic control method, this report obtained results consistent with the bulk of past research on the minimum wage. Local Minimum Wage Laws: Impacts on Workers, Families and Businesses . As of June 2017, nine large cities and eight states have enacted minimum wage policies in the $12 to $15 range. As more states and localities move forward with plans to raise the minimum wage, … This paper examines county and city level data collected in the Quarterly Census of Employment and Wages from 2009 to … Seattle is the first major city to raise minimum wage to $15 an hour. The Berkeley study investigates the effects of the Seattle minimum wage increases in 2015 and 2016 on workers’ weekly incomes and employment, using standard techniques they have applied in several previous studies and are applying in several current studies of other cities. Seattle's Minimum Wage Ordinance went into effect on April 1, 2015. Proposition 22 classifies drivers as … Minimum Wage Calculator. 1551 0 obj <>/Filter/FlateDecode/ID[<6D05868F8AB8904BB7570F20E10301F4>]/Index[1533 35]/Info 1532 0 R/Length 98/Prev 632891/Root 1534 0 R/Size 1568/Type/XRef/W[1 3 1]>>stream “The new policies will eventually increase pay for up to 30 percent of the workforce in these cities,” according to Michael Reich, co-chair of CWED and co-author of the report. We did not find such job losses. In this paper, researchers examined the effect of Seattle’s minimum wage ordinance on local area supermarket food prices over time and as wages phased in to $15 per hour. A new report by the Center on Wage and Employment Dynamics analyzes employment data before and after the law went into effect and finds no evidence of job loss in the city’s restaurant industry, even as … The minimum wages analyzed in the report reached much higher levels than any previous policies. The new study, by a team of scholars at the University of Washington, finds that hours worked by low-wage workers in Seattle fell by 9 percent following January 2016, when the Seattle minimum wage rose to $13 per hour for some workers, with reductions in both the number of jobs and average hours per worker. By the end of 2016 (the final year in the researchers’ analysis), minimum wages in the six cities had increased to $10.30 in San Jose, $10.50 in Chicago, $11.50 in the District of Columbia, $12.55 in Oakland and $13 in San Francisco and Seattle. In 2018, the minimum wage for large and small employers is set forth in the table below: h�bbd```b``~"׀�ɶD2)��^�y,[&U@$w4�4����@�1A�����F3��@��i&F���*���0~0 ��K Seattle’s groundbreaking minimum wage law is raising pay for low-paid workers without costing jobs. The report, “The New Wave of Local Minimum Wage Policies: Evidence from Six Cities,” from the Center on Wage and Employment Dynamics (CWED) at UC Berkeley analyzes the effects of minimum wage policies in the six large U.S. cities that were first to raise the minimum wage higher than $10. It voted to raise the minimum to $15 per hour over the course of several years. Berkeley Study: Minimum Wage Increase Hasn't Killed Jobs in Seattle ... Seattle's minimum wage law took effect in 2015 and will reach $15 for everyone by 2021. These minimum wages were slated to continue to rise—to $13 in Chicago and to $15 in the other five cities. The minimum wage increased to $10 or … UC Berkeley Professor of Economics and Director, Institute for Research on Labor and Employment, UC Berkeley . Contact: Jacqueline Sullivan | IRLE | jsullivan@berkeley.edu (504) 604-2289. However, our results were at odds with the results from a University of Washington study on the Seattle … Our first report in this series focused on Seattle, one of the first movers in this new wave. Sylvia A. Allegretto, report co-author, co-chair, Center on Wage and Employment Dynamics, UC Berkeley, allegretto@berkeley.edu,  (510) 289-9146, Carl Nadler, report co-author, postdoctoral scholar, Center on Wage and Employment Dynamics, UC Berkeley, cnadler@berkeley.edu, (510) 643-7094, Michael Reich, report co-author, co-chair, Center on Wage and Employment Dynamics at UC Berkeley, mreich@econ.berkeley.edu, (510) 384-4551. 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