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How much would a $15 minimum wage raise affect you?

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How much would a $15 minimum wage raise affect you?

Gradually raising the minimum wage to $15 by 2024 would directly lift the wages of 28.1 million workers. The average directly affected worker who works all year would receive a $3,900 increase in annual wage income—equal to a raise of 20.9 percent.

What happened to the federal minimum wage?

As the figure shows, rising costs of living since the last increase in the nominal minimum wage in 2009 have diminished the purchasing power of the federal minimum wage (the middle line for most of the graph), which had declined by 17\% as of 2020 and 18\% as of 2021 (not shown), a devastating fall in the earnings of the lowest-wage workers.

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Will the federal minimum wage increase to $15 by 2024?

The full increase to $15 by 2024 represents a 79.0 percent real increase in the minimum wage over its current value, and a 27.9 percent increase in purchasing power from the 1968 peak. 3 Such an increase would be the largest raise in the federal minimum wage since 1950, when it was lifted by an inflation-adjusted 85 percent in one year.

How much did minimum wage increase in 1968?

At the peak purchasing power of the minimum wage in 1968, a minimum wage worker earned $10.59 per hour (in 2021 dollars), 46\% more than a worker at the $7.25 federal minimum wage today. Had Congress continued to increase the minimum wage in line with productivity growth, the minimum wage today would be over $22 per hour.

What is the relationship between minimum wage and inflation?

In theory, raising the minimum wage forces business owners to raise the prices of their goods or services, thereby spurring inflation. In reality, the relationship between rising wages and inflation is more complex: Wages are only one part of the cost of a product or service paid for by consumers.

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How much does the minimum wage increase increase the price elasticity?

Their first main finding was that “wage-price elasticities are notably lower than reported in previous work: we find prices grow by 0.36 percent for every 10 percent increase in the minimum wage.”