Minimum Wage Hike in Ohio Would Result in Lost Jobs and Severe Blow to State Economy
Posted on: Wednesday, 6 September 2006, 12:00 CDT
WASHINGTON, Sept. 6 /PRNewswire/ -- A study on the impact of the proposed ballot initiative to raise Ohio's minimum wage shows that the hike to $6.85 would cost 12,000 jobs and deliver a $308 million hit to the Ohio economy, according to the Employment Policies Institute (EPI).
The study, commissioned by the EPI and conducted by respected labor economist Dr. David Macpherson from Florida State University, reveals that most of the economic cost, $202.6 million, would stem from increased labor costs to employers. But a significant portion, $105.9 million, reflects the lost income of the thousands of employees who stand to lose their jobs. Tragically, nearly one-third of the job loss would be suffered by those earning less than $25,000.
Dr. Macpherson's research also reveals that: * Almost 80% of the benefits would to go families that aren't poor; * The average family income of those who will benefit is $52,000 a year; * Almost two-thirds (62.7%) of those who will benefit from the hike are under 24 and almost half (48%) still live with their parents; * Nearly three-quarters (73%) of those who would benefit are part-time employees.
Unfortunately, many low-income families will see no benefit because they either do not work or work too few hours to significantly benefit from the increase. Overall, Ohio families whose incomes fall below the poverty line would experience only an average $63 increase in annual income.
"A minimum wage hike is not in the best interest of the state economy or needy families considering the resultant job loss and overall ineffectiveness of the policy," said Mike Flynn, EPI's director of legislative affairs. "Regrettably, proponents of the hike have made it clear that this is about politics and driving up support at the polls rather than effectively helping families."
To read "The Effects of the Proposed Ohio Minimum Wage Increase" by Dr. David Macpherson, visit http://www.epionline.org/
The Employment Policies Institute is a nonprofit research organization dedicated to studying public policy issues surrounding entry-level employment.
Employment Policies Institute
CONTACT: Alison Preszler of Employment Policies Institute,+1-202-463-7650
Web site: http://www.epionline.org/
Source: PRNewswire
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