The Fall 2018 Edition of ILEPI’s newsletter, Illinois Insights, has been released. Continue reading “Illinois Insights Fall 2018 Newsletter”
Between one-third and one-half of the rise in income inequality in America is due to the declining real value of the minimum wage. Continue reading “Boost Worker Incomes by Raising Illinois’ Minimum Wage”
La Grange: An increase to Illinois’ state minimum wage would grow the state’s economy and boost the paychecks of as many as 1.4 million workers by up to $6,000, according to new research from the Illinois Economic Policy Institute (ILEPI) … Continue reading Higher Minimum Wage Could Mean A $6,000 Raise For As Many As 1.4 Million Illinois Workers
A new study by the Illinois Economic Policy Institute and the University of Illinois at Urbana-Champaign finds that the Chicago Minimum Wage Ordinance has had positive impacts on incomes and no effect on employment in the city.
- Higher incomes for workers with no effect on business or employment growth
- City minimum wage will rise to $12 an hour on July 1
Professor Robert Bruno, Professor Emily E. LB Twarog, and Frank Manzo IV discuss state and local initiatives to support workers. Topics include the minimum wage, paid sick time, paid safe time, fair scheduling laws, prevailing wage laws, responsible bidder ordinances, local hire ordinances, and other policies. Continue reading “Podcast: All Policy Is Local”
A minimum-wage employee working full time cannot afford a modest one-bedroom apartment in Illinois, Minnesota, Wisconsin, Indiana, or Iowa. In all five Midwestern states, the minimum wage should be at least $10.00 an hour.
States with higher minimum wages have added more jobs over the past 12 months. That’s the conclusion of a new Economic Commentary [PDF] released by the Illinois Economic Policy Institute, which evaluates recent data from the Bureau of Labor Statistics. … Continue reading States with Higher Minimum Wages Added More Jobs Over the Past Year
Happiness levels of Americans vary across the country. However, there are steps that all states, even those with the highest happiness levels, can take to increase the aggregate well-being of their citizens. Happiness economics is a relatively new academic field … Continue reading Ways to Improve Happiness in America
Note: This post is an excerpt from The History of Economic Inequality in Illinois: 1850-2014 [PDF], published and released by the Illinois Economic Policy Institute on March 4, 2016. Although Illinois cannot completely counter national trends, the state and local governments … Continue reading 10 Potential Ways to Reduce Inequality in Illinois
Economists across the country have advocated for raising the minimum wage, claiming that the benefits outweigh the costs. For example, increasing the minimum wage has been found to boost consumer spending and reduce income inequality in the economy.
The federal minimum wage is $7.25 an hour and has not been increased since 2009. Though the federal rate has not increased in 7 years, many states and localities have raised their own minimum wages. Chicago raised its local minimum wage to $10.00 in 2015. By 2019, the City is expected to have a minimum wage of $13.00, per an ordinance passed by the City Council. Continue reading “Illinois Needs a $10 Minimum Wage Just to Keep Up With Inflation”
Analysis of new data from the Current Population Survey (conducted jointly by the U.S. Bureau of Labor Statistics and the U.S. Census Bureau) reveals that 4.8 percent of the Illinois workforce earns less than $8.25 an hour, the legal minimum wage for workers aged 18 years or older in firms with 4 or more employees. In total, an estimated 264,508 workers earned less than the minimum wage in 2014. Among sub-minimum wage earners (SMWEs), hourly pay averages just $6.66, or $1.59 per hour below the minimum wage floor. This translates into an economic loss of $1,654 over the year for part-time employees who worked 20 hours per week in 2014.
While many of these workers are under 18 years old or are employed by small businesses excluded from the minimum wage law, many others are the victims of wage theft. A 2009 study by researchers at the National Employment Law Project, the University of Illinois at Chicago, Cornell University, and the University of California – Los Angeles found that 26 percent of low-wage, “front-line” workers were paid less than the legally-required minimum wage. The highest violation rates occurred in apparel and textile manufacturing, private households, and personal and repair services. Similarly, in a survey of 57 car washes in the City of Chicago, the University of Illinois at Urbana-Champaign found that 76 percent of hand car wash workers earned below the state’s minimum wage and 13 percent earned less than $2 per hour.
Minimum wage theft occurs for many reasons. First, there could be information problems in that employers may not realize that their practices are depriving workers of owed income or that they have misclassified workers as temporary or contingent workers. Second, tipped employees may not be compensated by their employer enough to close the minimum wage gap when the tips fall short. Third, business practices that elevate short-term profits above long-term profitability put downward pressures on wages. Fourth, economically inefficient social issues such as racial, gender, sexual orientation, and religious discrimination could also be factors. Continue reading “Over 250,000 Illinois Workers Earn Less than the Minimum Wage”