Wednesday, January 15, 2014

Who benefits from a minimum wage increase?

David Henderson has some solid numbers that show how little proposed minimum wage increases would actually target people in poverty.

. Only 11.3 percent of workers who would gain from the increase live in households officially defined as poor.
. A whopping 63.2 percent of workers who would gain were second or even third earners living in households with incomes equal to twice the poverty line or more.
. Some 42.3 percent of workers who would gain were second or even third earners who live in households that have incomes equal to three times the poverty line or more.


That's not even controlling for poor people who were priced out of the job market.

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