Tag: jobs

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93 Out of 102 Counties in Illinois Have Low Income Inequality

Frank Manzo IV

Frank Manzo IV is the Policy Director of the Illinois Economic Policy Institute (ILEPI). Visit ILEPI at www.illinoisepi.org or follow ILEPI on Twitter @illinoisEPI. This is part of the “Frankonomics” series.

Illinois’ middle class is relatively strong in 93 of the state’s 102 counties, according to the Measure of America by the Social Science Research Council.

One of the many outcomes included in the Measure of America is the Gini coefficient for every county across America. Gini coefficients are the most commonly used measure of income inequality. The coefficient ranges from 0, which represents complete equality, to 1, which reflects complete inequality (i.e., one person has all the income).

For the United States, the national average Gini coefficient is 0.469. Fully 93 out of 102 counties in Illinois have a Gini coefficient below the national average.

Continue reading “93 Out of 102 Counties in Illinois Have Low Income Inequality”

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Study – Union Power in Illinois is Significant, but Waning

Frank Manzo IV

Frank Manzo IV is the Policy Director of the Illinois Economic Policy Institute (ILEPI). Visit ILEPI at www.illinoisepi.org or follow ILEPI on Twitter @illinoisEPI.

CHICAGO- A new study released today finds that labor unions play a vital role in Illinois’ communities and economy, but face major challenges. The study, The State of the Unions 2015: A Profile of Unionization in Chicago, in Illinois, and in America [PDF] was conducted by researchers at the University of Illinois (Robert Bruno, PhD), the University of Chicago (Virginia Parks, PhD), and the Illinois Economic Policy Institute (Frank Manzo IV, MPP).

Since 2005, union membership in Illinois has declined by approximately 97,000 workers, contributing to the 1.12 million drop in union members across the nation. Declining unionization in Illinois has primarily been the result of decreases in male, Latino/a, and private sector unionization.

However, there has been some good news for those in the Illinois labor movement. From 2012 to 2014, the state’s unionization rate increased from 14.6 percent to 15.1 percent, and total union membership increased by about 30,000 workers. Continue reading “Study – Union Power in Illinois is Significant, but Waning”

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The CCW is Common Sense Construction

Frank Manzo IV

Today, the Midwest Economic Policy Institute released Common Sense Construction: The Economic Impacts of  Indiana’s Common Construction Wage with the University of Illinois School of Labor and Employment Relations and Smart Cities Prevail. The report finds that Indiana’s Common Construction Wage (CCW) promotes positive labor market outcomes for both construction workers and contractors. Full report [pdf] One-page summary [pdf] Ten facts about the Indiana CCW: 1. The Common Construction Wage keeps Hoosier jobs local. (For more, see pages 5 and 11-13) 2. The Common Construction Wage does not increase total construction costs for public projects. (Pg. 4) 3. The Common Construction Wage promotes an upwardly-mobile, high-road economy for working families. (Pg. … Continue reading The CCW is Common Sense Construction

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ICYMI: ILEPI on Chicago Tonight Discussing Minimum Wage

Frank Manzo IV

Frank Manzo IV is the Policy Director of the Illinois Economic Policy Institute (ILEPI). Visit ILEPI at www.illinoisepi.org or follow ILEPI on Twitter @illinoisEPI.

 

On May 20, 2014, ILEPI Policy Director Frank Manzo IV was a panelist on WTTW’s Chicago Tonight with Ted Dabrowski discussing the pros and cons of raising the minimum wage in Illinois. Manzo supported raising the minimum wage to $10.00 per hour while Dabrowski has endorsed abolishing Illinois’ minimum wage altogether. Here is a link to the segment, and below is additional information on the effects of raising the minimum wage in Illinois.

 

Should we raise the minimum wage to $10 an hour?

The Illinois economy is still recovering from the Great Recession. The unemployment rate is about one and a half percentage points lower today than it was one year ago. But the recovery has seen an ongoing rise in income inequality in the labor market. To partially offset the income gap– independent of any action (or nonaction) at the federal level– Illinois should raise the minimum wage to $10 an hour.

In 2012, 1 million of the state’s 6 million workers earned less than $10 an hour. Of these one million low-wage earners, 57 percent were female, 45 percent were nonwhite, and 60 percent worked full-time (35 hours a week or more). In a study co-authored with the University of Illinois, ILEPI found that raising the minimum wage to $10 would increase worker income by $2 billion for these low-wage workers and lift 60,000 to 100,000 Illinois residents above the poverty line, reducing reliance on government programs and lowering costs to taxpayers. These workers would then spend that new income back in the economy, resulting in $7 billion in new economic output, and either a very small drop or a very small gain in employment. Thus, in Illinois, a state where the cost of living is higher than the national average, a raise to $10 would be beneficial to the economy. See the full report here [pdf].

Why does the minimum wage have a stimulative impact? What about economic theory which says it reduces jobs?

We know that reality is, unfortunately, far more complex than economic theory. Research shows little to no discernible impact of the minimum wage on employment. Most estimates on the supposed reduction in jobs are between zero percent and less than a fraction of a percent— it would be a false representation of economic research to suggest otherwise. We also know that poorer Americans spend higher shares of their incomes in the economy than richer Americans. One 2009 study by the Federal Reserve Bank of Chicago found that “spending increases substantially after a minimum wage hike.” For every $1 increase in the minimum wage, families with a minimum wage earner raise spending by $744 to $869 per year.

Isn’t the minimum wage a job killer for small businesses? Continue reading “ICYMI: ILEPI on Chicago Tonight Discussing Minimum Wage”

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Union Power in 2014: Significant but Waning

Frank Manzo IV

Frank Manzo IV is the Policy Director of the Illinois Economic Policy Institute (ILEPI). Visit ILEPI at www.illinoisepi.org or follow ILEPI on Twitter @illinoisEPI.

Today, the Illinois Economic Policy Institute (ILEPI) released a new Research Report on the Illinois labor movement. Co-authored with researchers from the University of Illinois Labor Education Program (LEP) and University of Chicago School of Social Service Administration (SSA), The State of the Unions 2014: A Profile of Unionization in Chicago, in Illinois, and in America ­(PDF) analyzes the current state of labor unions and the course of unionization. The report investigates unionization rates and the impact of unions on wages across demographic, education, sector, industry, and occupation classifications.

Below are the main findings of the report, which is available online at this link (PDF):

  • There are approximately 116,000 fewer union members in Illinois today than there were in 2003 (and about 1.26 million fewer nationwide);
  • The decline in union members was primarily the result of decreases in male unionization, white unionization, and private sector unionization;
  • Despite the long-term downward trends, however, unionization increased in Illinois last year (from 14.6 percent to 15.7 percent- or by about 50,000 new members);
  • The year-over-year gains were driven by increases in the unionization of Chicago area workers, female workers, African-American workers, public sector workers, and older workers. Indeed, while union membership rates for women, African-American workers, and the public sector have trended downwards nationally, unionization for these groups has risen in Illinois since 2003;
  • Employment in the utilities industry, construction industry, or public sector raises the chances that a given Illinois worker is a union member;
  • High school dropouts, non-citizens, and residents who live in rural communities are less likely to be unionized in Illinois;
  • Unions raise worker wages by 21.4 percent on average (20.3 percent on median) in Illinois, higher than the national average of 16.7 percent;
  • Illinois ranks 8th among the 50 states plus D.C. in terms of union wage premium; and
  • Union workers work 4.8 hours longer each week than nonunion workers in Illinois.

 

Separately, ILEPI has also released another Economic Commentary jointly with the University of Illinois Labor Education Program on the socioeconomic differences between union households and nonunion households in America. Union and Nonunion Households: General Social Survey, 2000-2012 (PDF) compares and contrasts individuals in the two types of households across many characteristics– including household composition, work and income traits, religiosity, political affiliation, and institutional confidence. Continue reading “Union Power in 2014: Significant but Waning”

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Debunking 10 Myths about the Proposed Illiana Expressway

Frank Manzo IV

In the past few weeks, the proposed Illiana Expressway has been subject to much criticism. Most of this criticism, however, has relied more on rhetoric and misinformation than actual fact. Below, 10 myths about the Illiana Expressway are debunked.

Myth #1: The Illiana Expressway will serve little to no purpose.

Truth: The Illiana Expressway is a proposed 47-mile toll road that would link I-55 in Will County, Illinois to I-65 in Lake County, Indiana. The corridor is intended to primarily benefit the heavy-trucking industry in the short run, servicing the growing intermodal freight system in south Chicagoland. Diverting trucking traffic from I-80, I-90, and Route 30, however, relieves congestion and benefits commuters and families. One southern Chicagoland government official told me that “to those of us who live with the truck traffic congestion on local roads with the related increased costs of maintenance and public safety issues, the need is far more obvious” than to those outside of southern Chicagoland.

Additionally, the expressway will have long-term transportation benefits, as the population of Will County is expected to grow by 548,000 (CMAP) to 695,000 (IDOT) people by 2040. The Illiana Expressway is a forward-thinking project that will be vital to these future families, businesses, and visitors. Finally, the likely construction of the South Suburban Airport (often called Lincoln National Airport), which also is projected by CMAP to generate 7,737 direct jobs and 42,739 additional jobs, only raises the need for the Illiana project.

Myth #2: The Illiana Expressway will unnecessarily burden taxpayers. Continue reading “Debunking 10 Myths about the Proposed Illiana Expressway”