The Minimum We Can Do: Wage Floors in the U.S. Sylvia A. - - PowerPoint PPT Presentation

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The Minimum We Can Do: Wage Floors in the U.S. Sylvia A. - - PowerPoint PPT Presentation

Jun 05, 2023 272 likes •564 views

The Minimum We Can Do: Wage Floors in the U.S. Sylvia A. Allegretto, PhD Economist and Co-director, Center on Wage & Employment Dynamics University of California, Berkeley " Do not let any calamity-howling executive with an income of

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The Minimum We Can Do:

Wage Floors in the U.S.

Sylvia A. Allegretto, PhD

Economist and Co-director, Center on Wage & Employment Dynamics University of California, Berkeley

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"Do not let any calamity-howling executive with an income of $1,000 a day, ...tell you... that a wage of $11 a week is going to have a disastrous effect on all American industry.” ~President Roosevelt

The night before signing the 1938 FLSA

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$0 $1 $2 $3 $4 $5 $6 $7 $8 $7.25

Allegretto 2015

Source: Fair Labor Standards Act & amendments

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$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00

$7.25

Allegretto 2015

Source: Fair Labor Standards Act & amendments

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$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00

$7.25 $2.13

Allegretto 2015

Source: Fair Labor Standards Act & amendments

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$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00

$7.25 $2.13

TC = 50% TW= 50% Allegretto 2015

Source: Fair Labor Standards Act & amendments

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$0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 $8.00

$7.25 $2.13

71% 40%

TC = 50% TW= 50%

29%

Allegretto 2014

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$0.00 $2.00 $4.00 $6.00 $8.00 $10.00

$7.25 $2.13

Allegretto 2015

Source: Fair Labor Standards Act & amendments. Real value of the minimum & subminimum wages 2014$.

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  • 5.4%
  • 0.9%

0.9% 1.9% 6.0% 8.1% 10.6% 18.5% 31.2%

  • 10%
  • 5%

0% 5% 10% 15% 20% 25% 30% 35% 10th 20th 30th 40th 50th (Median) 60th 70th 80th 90th

Source: BLS Current Population Survey data Allegretto 2015

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0% 10% 20% 30% 40% 50% 60% 70% 80% All workers Tipped workers Minimum wage workers Male Female

Source: BLS CPS data. Allegretto & Cooper, EPI 2014 brief http://www.irle.berkeley.edu/cwed/briefs/EPI-CWED-BP379-1.pdf

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0% 10% 20% 30% 40% 50% 60% 70% 80% 16-19 20-24 25-29 30+ Share of WF Within group MW share Share of all MW workers

Allegretto 2015 Source: BLS CPS data

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Teens 12.5% Age 20 to 29 36.5% Age 30 to 39 16.6% Age 40 to 49 20.8% Age 55+ 13.7%

Source: The Economic Policy Institute, Briefing Paper #371. http://www.epi.org/publication/safety-net-savings-from-raising- minimum-wage/ by David Cooper.

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0% 10% 20% 30% 40% 50% 60%

35.2% 53%

Source: Economic Policy Institute Allegretto 2015

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0% 50% 100% 150% 200% 250% 300%

Source: Economic Policy Institute Allegretto 2015

Productivity Worker Compensation

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$2 $3 $4 $5 $6 $7 $8 $9 $10 5 10 15 20 25 30 35

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Allegretto 2015

30 MW

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$0 $1 $2 $3 $4 $5 $6 $7 $8 5 10 15 20 25 30 35 40

1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

TW

Allegretto 2015

12 34

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Allegretto 2015

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$2.13 $2.13 $2.63 $4.25 $5.79 $9.47 $5.12 $5.87 $4.87 $4.25 $3.36

$0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10

Federal situation Nebraska Arkansas South Dakota Connecticut Washington State Tip Credit Tipped Wage

Allegretto 2015

$7.25 $9.47 $9.15 $8.50 $8.00 $7.50

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6.7% 16.1% 19.4% 6.0% 14.6% 16.2% 6.7% 12.1% 13.5%

0% 5% 10% 15% 20% 25% All workers Tipped workers Waiters

Full TC ($2.13 TW) Partial TC ($2.13<TW<MW) No TC (No TW!)

Allegretto 2015 Source: BLS March CPS data. Allegretto & Cooper 2014.

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44% 45% 46% 47% 48% 49% 50% 51% 52% 53% 5% 10% 15% 20% 25% 30% 1973 1975 1977 1979 1981 1983 1985 1987 1989 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 2011

Middle class share of total income

Source: Madland & Bunker CAP. Hirsch and Macpherson, unionstats.com; U.S. Census, Current Population Reports.

Union membership

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  • 4.2%
  • 5.7%
  • 3.5%
  • 2.3%
  • 1.6%
  • 1.9%

0.0% 1.2% 2.3%

  • 10%
  • 5%

0% 5% 10% 15% 20% 25% 30% 35% 10th 20th 30th 40th 50th (Median) 60th 70th 80th 90th

Source: BLS Current Population Survey. Allegretto 2015

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  • More important as few workers have

unions/bargaining power

  • Four decades of declining wages
  • Recent stagnating family incomes
  • Significant increases in student loans
  • Workers falling further behind amidst

growing inequality

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 Yes, both the MW and the TW

  • Natural experiment and credible academic studies

 Polls report 75% want $12.50 MW

  • 53% of Republicans agree
  • 71% support elimination of tipped wage

 Workers, activists & unions push forward

  • FFF $15 and right to collectively bargain
  • Restaurant Opportunities Centers
  • Unions support higher MWs
  • OUR Walmart
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Sylvia A. Allegretto, PhD

allegretto@berkeley.edu www.irle.berkeley.edu/cwed/allegretto.html 510 643-7080

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  • CWED http://www.irle.berkeley.edu/cwed/allegretto.html
  • IRLE: www.irle.berkeley.edu/research/minimumwage
  • The Economic Policy Institute: www.epi.org
  • NELP: www.nelp.org
  • DOL FLSA: www.dol.gov/dol/aboutdol/history/flsa1938.htm