Cbo minimum wage pdf download

But the cbo warned that raising the minimum wage could also cause employers to lay off lowwage workers or hire fewer of them, reducing overall employment by about 500,000 jobs, or about 0. Cbos minimum wage report predicts job losses the new. The troubling fine print in the claim that raising the. The nominal federal minimum wage has risen over the years. The cbos calculation that a minimumwage increase would cost 500,000 jobs is based on a proposal by sen. Serious analysis has called cbo s assumptions into question. The cbo, weighing in on a plan to hike the federal minimum wage, looked at two increases.

Both hikes would have similar, but more muted, effects on wages and employment. Congressional budget office, using monthly and annual data from the census bureaus current population survey. The minimum wage in competitive markets and markets with. The effects of a minimumwage increase on employment and. Use the interactive tool to explore how various policies to increase the federal minimum wage would affect earnings, employment, family. The cbos estimates on the impact of a minimum wage increase were done in response to a request by sen.

For this report, cbo examined the effects on employment and family income of two options for increasing the federal minimum wage see the figure below. Even then theres a clear tradeoff a minor fall in jobs. The effects on employment and family income of increasing. In addition, the bill would repeal the separate federal minimum cash wage for workers who receive tips by. After 2025, the minimum wage would be adjusted annually to account for changes in the median hourly wage of all workers. The minimum wage hike likely cometh, but destruction isnt certain the cbos report on the minimum wage gave both liberals and conservatives valuable ammunition. Why cbo differs from other economists on the minimum wage. Congressional budget office report on minimum wage c. Cbo predicts job losses from minimum wage hike the congressional budget office is projecting job losses as a result of a proposed federal minimum. Senator thune on minimum wage bill senator john thune rsd argued against passage of s. Cbo says raising minimum wage will lead to job cuts. The minimum wage hike likely cometh, but destruction isn.