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Raising the minimum wage has always been about the dignity, as well as the wages, of working people. We who place so much value on our ability to provide for ourselves and our families should recognize the importance of ensuring a dignified living wage for all full-time workers.
Yet during the debate on the minimum wage in the Pennsylvania House in May, Republicans in the Pennsylvania House of Representatives showed us what they think of low-wage workers. They proposed amendments to the minimum wage bill that are classic examples of blaming the victim. One would exclude workers without a high school degree, or the equivalent, from the protection of the minimum wage. Another would require workers to pass a literacy test to earn the minimum wage.
These representatives—many of whom come from districts in which ten percent or more of the population do not have a high school degree and who complained about the government protecting their lives by requiring them to wear masks—must believe that hard-working people need their paternalistic hand to tell them how to live their lives.
These amendments show us that too many Republicans are motivated by a toxic individualism that assumes people making low wages are at fault for not trying hard enough while those of us who make higher wages deserve all the credit for doing so.
I was lucky enough to grow up in a small town in upstate New York where I had friends from every economic class. I learned then how much our economic success is a product of luck as well as pluck.
As a young child, I was surprised when I visited friends whose families had few, if any, books in their homes. But I was not surprised when, in later years, they didn’t read as well as my upper-middle-class friends did. And some of us who did well in school had the advantage of pre-K education or of parents who had the time and expertise to support us in school or who could pay for extra help. They could also pay for the private lessons in science and art, as well as summer camps, that stimulated our minds. These advantages were not available to our friends who came from families with lower incomes.
As a teenager, I—like my friends, poor and rich—did a lot of stupid things, that sent some of us on a downward path. But those of us who came from upper-middle-class families were protected from the mistakes we all made—like getting in trouble with the police, goofing off at school and failing a class or two, being forced to leave college or an apprenticeship program, getting pregnant or getting someone pregnant. We could afford lawyers, tutors, private guidance counselors, and trips to a state where abortion was legal. When we made mistakes, we got second or third chances. Our friends from low-income families had far less margin for error. When they made the mistakes that we all make, they had to drop out of high school or college and take a dead-end job to provide for the children they had when only young themselves.
When we looked for summer jobs, those of us who came from middle-class or union families had connections that helped us get jobs that paid well and / or gave us the kind of help we needed to get ahead in the future. Some of us could take unpaid internships that helped us get into a better college. Our friends from low-income families without those connections started at the bottom in jobs with little future.
That’s not to say that those of us who had the right parents didn’t work hard to get where we are today. We did work hard as teenagers and young adults, and we work hard at our jobs today. But our friends who didn’t have the same opportunities we did also worked hard then and still do today. But they didn’t have the opportunities, or even more importantly, the extra chances that we had. Some of them, with extraordinary talent and ambition, did manage to make it into the upper middle class. But many did not. And some have struggled their whole lives, no matter how hard they have worked.
Unequal opportunities in our society—as well as an economy dominated by large corporations that hold wages down for working people—are why we must ensure that Pennsylvanians receive a living wage that respects their hard work.
For if we are honest with ourselves, none of us are self-made people. And as the philosopher Morris Raphael Cohen once expressed: Anyone who thinks they are self-made is no credit to their maker.
Originally published in the Pennsylvania Capital-Star
By Marc Stier
House Bill 1500, co-sponsored by Democratic Reps. Jason Dawkins of Philadelphia and Patty Kim of Dauphin County, would increase the minimum wage to $15 per hour over three years and then create annual increases in the future based on the cost of living. While the bill, which is now before the House Appropriations Committee, is not perfect, it would provide enormous benefits to Pennsylvania workers and Pennsylvania’s economy.
The legislation has faced the usual arguments made against raising the minimum wage. But what the critics seem not to have noticed is that those arguments make little sense under current economic conditions, if they ever did.
Indeed, it’s hard not to conclude that this is the best possible time to raise the minimum wage for both workers and businesses.
Raising the minimum wage is almost certain to lead to the creation—not elimination—of jobs and a better environment for businesses.
Businesses all over the state are frustrated by their inability to hire enough workers in the post-pandemic economy. Many of them have already raised wages. Many more would do so if they didn’t fear it would put them at a competitive disadvantage. By creating a higher floor for wages, a higher minimum wage allows businesses to pay more without fear of losing business to their competitors. And higher wages bring more potential workers back into the job market.
Higher wages—and the new jobs created when more people enter the workforce—would also generate more consumption of goods, which would lead to more economic activity and even more new jobs. Using recent Keystone Research Center projections, I estimate that 1.3 million to 1.5 million workers—or as much as 25% of the state’s work force—would get a raise when the minimum wage reached $15 and that at least $5 billion to $6 billion in wages would be added to the state’s economy. And the KRC projection does not account for the multiplier effect of new job creation.
I’ve adapted KRC projections because they assume the minimum wage reaches $15 in January 2014, not 2016 as it is in HB 1500.
Having grown up in a small, family-owned business, I understand that small business owners worry about how to afford paying higher wages. But what my family discovered is paying higher wages brought us workers who were better motivated and less likely to quit, reducing the cost of finding and training employees. Higher wages for all brought us more customers, too. We couldn’t pay more if we were the only business doing so. But when our competitors also had to pay more, we all benefited.
Raising wages is especially important to protecting workers at a time of high, if recently declining, inflation. The workers who would see higher wages because of a higher minimum wage are not just those making below $15. As businesses adjust their wage scales to prevent employees from leaving, a higher minimum wage would boost wages for those making more than that new minimum wage. And, no, it wouldn’t lead to higher inflation because wages are not the sole, or in many cases, the main cost of doing business.
The claim that raising the minimum wage helps businesses and creates jobs may sound counter-intuitive to some who have studied abstract economic theory. But as contemporary research shows, abstract theory ignores an important contemporary reality—giant, wealthy corporations dominate our economic life. A large share of workers is employed by huge corporations. A large share of small businesses buys goods and services from those same corporations.
Lack of competition in most industries gives those corporations economic power. The wages huge corporations pay are below what they would be if they had real competition. And the goods and services they sell are priced higher than they would be in a truly competitive market.
A higher minimum wage—like the right to form unions, the social safety net, and a tax system that asks the rich to pay at a higher rate than the poor—are a necessary counter to the near-monopoly-level power of corporate giants. It doesn’t raise wages above what they would be in truly competitive market but ensures that they reach that level.
Higher wages shift income from the wealthy people, who own corporations and save much of what they earn, to working people who spend what they earn. That creates more economic activity and jobs. By protecting workers, a higher minimum wage ultimately helps small businesses, too.
Pro-business advocacy groups often fight the minimum wage in the name of small businesses. But the truth is that they are fighting for those who support them: large corporations, which have far too much power in our economic life, and through their campaign contributions, our political life as well.
There has never been a better time for Pennsylvania, and our country, to counter their power and work together to create a political economy that works for all of us.
The state of Pennsylvania does not allow local governments—whether counties or municipalities—to set a higher minimum wage than that set by the state. It should do so.
The reason it should is obvious: Pennsylvania is a large, diverse state in which local economies differ from one county and city to another.
Some of our counties have a much higher cost of living than others, which means that the single statewide minimum is less valuable to working people in some counties than others.
Some of our counties have much higher average wages than others, which means that they can support a higher minimum wage without any job loss. (And it’s pretty clear that, under current economic conditions, it would take a much higher minimum wage to cause job loss than anything being discussed in the General Assembly.)
Some of our counties have lower unemployment or more employers looking to hire people than others which also means they’re able to sustain a higher minimum wage with no job loss.
All these factors would justify a higher local minimum wage than that set by the state.
County and municipal governments will, no doubt, be cautious in raising the minimum wage too high. While we have repeatedly argued that, at the rates being considered statewide, a higher minimum wage will not lead to the loss of jobs, there is no doubt some point at which a higher minimum wage might cost some jobs. And if one county raises its wages too high, relative to those immediately around it, the difference in wages could lead to differential in prices from one side of the county line to another.
So, counties are likely to be very careful about raising the minimum wage above the state level, and some may choose to only raise their wage in concert with some of the surrounding counties. Local option in setting the minimum wage may lead to regional as well as county minimum wage rates.
You can see the extent to which the wage now varies in the following chart, drawn from Glasmeier, Amy K., Living Wage Calculator, 2023, Massachusetts Institute of Technology. https://livingwage.mit.edu. According to the authors, “A living wage is what one full-time worker must earn on an hourly basis to help cover the cost of their family’s minimum basic needs where they live while still being self-sufficient.: the Living Wage Calculator’s estimate of living wage includes eight typical expenses or basic needs – food, childcare, health care, housing, transportation, civic engagement, broadband access, and other necessities. In addition to these basic needs, the Calculator also accounts for the additional cost to families associated with income and payroll taxes. (See the FAQ page. Click here for detailed information about the methodology of the Living Wage.
| MIT Living Wage Calculation for Pennsylvania Counties | ||||||||||||
| The living wage shown is the hourly rate that an individual in a household must earn to support his or herself and their family. In the case of households with two working adults, all values are per working adult, single or in a family unless otherwise noted. | ||||||||||||
| County | One Adult Working | 2 Adults (One Working) | 2 Adults (Both Working | |||||||||
| 0 Children | 1 Child | 2 Children | 3 Children | 0 Children | 1 Child | 2 Children | 3 Children | 0 Children | 1 Child | 2 Children | 3 Children | |
| Adams | $15.77 | $32.98 | $41.74 | $54.58 | $26.26 | $32.48 | $37.28 | $41.75 | $13.13 | $18.49 | $23.14 | $27.62 |
| Allegheny | $16.24 | $33.64 | $43.45 | $56.92 | $25.91 | $32.11 | $36.91 | $40.82 | $12.96 | $18.82 | $23.98 | $28.70 |
| Armstrong | $14.59 | $31.55 | $40.51 | $52.24 | $24.62 | $30.85 | $35.64 | $38.98 | $12.31 | $17.78 | $22.52 | $26.54 |
| Beaver | $16.24 | $34.65 | $45.63 | $60.19 | $25.91 | $32.11 | $36.91 | $40.82 | $12.96 | $19.33 | $24.99 | $30.22 |
| Bedford | $14.98 | $30.96 | $39.69 | $51.40 | $24.48 | $30.49 | $35.28 | $38.88 | $12.24 | $17.48 | $22.12 | $26.15 |
| Berks | $15.71 | $34.30 | $44.43 | $57.99 | $25.94 | $32.53 | $37.32 | $41.07 | $12.97 | $19.15 | $24.44 | $29.20 |
| Blair | $14.71 | $30.59 | $38.43 | $48.82 | $24.98 | $31.01 | $35.80 | $39.17 | $12.49 | $17.30 | $21.48 | $24.96 |
| Bradford | $15.42 | $31.16 | $39.81 | $51.63 | $24.87 | $30.78 | $35.57 | $39.35 | $12.43 | $17.58 | $22.17 | $26.26 |
| Bucks | $17.53 | $36.83 | $47.85 | $62.56 | $27.83 | $34.42 | $39.21 | $43.39 | $13.92 | $20.41 | $26.02 | $31.31 |
| Butler | $16.24 | $33.57 | $43.30 | $56.70 | $25.91 | $32.11 | $36.91 | $40.82 | $12.96 | $18.79 | $23.92 | $28.61 |
| Cambria | $14.96 | $30.94 | $39.65 | $51.22 | $24.37 | $30.49 | $35.28 | $38.77 | $12.18 | $17.47 | $22.10 | $26.07 |
| Cameron | $14.74 | $31.01 | $39.78 | $51.17 | $24.25 | $30.49 | $35.28 | $38.53 | $12.13 | $17.50 | $22.16 | $26.05 |
| Carbon | $16.76 | $34.61 | $43.85 | $57.27 | $26.87 | $33.68 | $38.47 | $42.93 | $13.44 | $19.31 | $24.17 | $28.87 |
| Centre | $18.25 | $34.36 | $43.18 | $56.12 | $27.72 | $33.79 | $38.59 | $42.97 | $13.86 | $19.18 | $23.86 | $28.34 |
| Chester | $17.53 | $37.51 | $49.33 | $64.79 | $27.83 | $34.42 | $39.21 | $43.39 | $13.92 | $20.76 | $26.70 | $32.41 |
| Clarion | $15.32 | $31.32 | $40.41 | $52.18 | $24.72 | $30.49 | $35.28 | $38.53 | $12.36 | $17.66 | $22.47 | $26.51 |
| Clearfield | $14.63 | $30.51 | $38.80 | $50.05 | $24.51 | $30.49 | $35.28 | $38.97 | $12.25 | $17.26 | $21.67 | $25.53 |
| Clinton | $14.77 | $30.70 | $38.54 | $49.30 | $24.72 | $31.12 | $35.91 | $39.62 | $12.36 | $17.35 | $21.54 | $25.18 |
| Columbia | $15.95 | $32.82 | $42.67 | $55.64 | $25.40 | $31.23 | $36.02 | $39.44 | $12.70 | $18.41 | $23.61 | $28.12 |
| Crawford | $14.43 | $30.96 | $39.69 | $51.11 | $24.35 | $30.49 | $35.28 | $38.61 | $12.18 | $17.48 | $22.12 | $26.02 |
| Cumberland | $14.43 | $30.96 | $39.69 | $51.11 | $24.35 | $30.49 | $35.28 | $38.61 | $12.18 | $17.48 | $22.12 | $26.02 |
| Dauphin | $16.01 | $34.12 | $43.74 | $57.15 | $26.18 | $32.79 | $37.59 | $41.64 | $13.09 | $19.06 | $24.12 | $28.81 |
| Delaware | $17.53 | $36.64 | $47.44 | $61.95 | $27.83 | $34.42 | $39.21 | $43.39 | $13.92 | $20.32 | $25.83 | $31.03 |
| Elk | $14.35 | $31.43 | $40.63 | $53.18 | $24.46 | $30.49 | $35.28 | $39.12 | $12.23 | $17.72 | $22.59 | $26.98 |
| Erie | $14.35 | $31.43 | $40.63 | $53.18 | $24.46 | $30.49 | $35.28 | $39.12 | $12.23 | $17.72 | $22.59 | $26.98 |
| Fayette | $16.24 | $33.66 | $43.50 | $56.99 | $25.91 | $32.11 | $36.91 | $40.82 | $12.96 | $18.83 | $24.01 | $28.74 |
| Forest | $15.05 | $31.42 | $40.21 | $51.73 | $24.57 | $30.90 | $35.70 | $39.04 | $12.28 | $17.71 | $22.37 | $26.31 |
| Franklin | $15.85 | $32.24 | $40.93 | $53.49 | $25.25 | $31.81 | $36.60 | $40.95 | $12.62 | $18.12 | $22.73 | $27.12 |
| Fulton | $14.74 | $30.24 | $38.26 | $49.23 | $24.89 | $30.49 | $35.28 | $39.02 | $12.44 | $17.12 | $21.40 | $25.15 |
| Greene | $15.53 | $32.41 | $42.48 | $55.51 | $24.90 | $30.59 | $35.38 | $38.65 | $12.45 | $18.20 | $23.51 | $28.06 |
| Huntingdon | $14.95 | $30.96 | $39.69 | $51.51 | $24.77 | $30.49 | $35.28 | $38.98 | $12.39 | $17.48 | $22.12 | $26.20 |
| Indiana | $14.92 | $31.60 | $40.74 | $52.70 | $24.85 | $30.73 | $35.52 | $38.87 | $12.43 | $17.80 | $22.64 | $26.75 |
| Jefferson | $14.75 | $31.30 | $40.32 | $52.03 | $24.42 | $30.54 | $35.34 | $38.60 | $12.21 | $17.65 | $22.43 | $26.44 |
| Juniata | $14.35 | $30.15 | $38.08 | $48.41 | $24.28 | $30.49 | $35.28 | $38.53 | $12.14 | $17.08 | $21.31 | $24.77 |
| Lackawanna | $15.16 | $32.73 | $42.36 | $55.47 | $25.25 | $31.36 | $36.15 | $39.95 | $12.62 | $18.37 | $23.45 | $28.03 |
| Lancaster | $16.39 | $34.34 | $43.65 | $56.81 | $26.68 | $33.33 | $38.12 | $42.26 | $13.34 | $19.17 | $24.08 | $28.65 |
| Lawrence | $14.51 | $32.59 | $42.71 | $56.06 | $24.43 | $30.73 | $35.52 | $39.02 | $12.22 | $18.30 | $23.63 | $28.31 |
| Lebanon | $16.05 | $33.39 | $42.86 | $56.04 | $25.57 | $32.17 | $36.97 | $40.95 | $12.78 | $18.69 | $23.70 | $28.30 |
| Lehigh | $16.76 | $34.92 | $44.53 | $58.29 | $26.87 | $33.68 | $38.47 | $42.93 | $13.44 | $19.46 | $24.49 | $29.34 |
| Luzerne | $15.16 | $32.06 | $41.01 | $53.29 | $25.25 | $31.36 | $36.15 | $39.95 | $12.62 | $18.03 | $22.78 | $27.03 |
| Lycoming | $15.85 | $32.07 | $40.98 | $53.18 | $25.24 | $31.42 | $36.21 | $39.99 | $12.62 | $18.04 | $22.76 | $26.98 |
| Mckean | $14.85 | $30.58 | $38.93 | $49.88 | $24.26 | $30.49 | $35.28 | $38.61 | $12.13 | $17.29 | $21.74 | $25.45 |
| Mercer | $14.90 | $32.39 | $42.56 | $56.24 | $24.31 | $30.49 | $35.28 | $39.06 | $12.15 | $18.20 | $23.55 | $28.39 |
| Mifflin | $14.55 | $30.96 | $39.69 | $51.62 | $24.67 | $30.49 | $35.28 | $39.08 | $12.33 | $17.48 | $22.12 | $26.26 |
| Monroe | $17.02 | $34.96 | $44.95 | $59.91 | $26.42 | $33.36 | $38.16 | $43.39 | $13.21 | $19.48 | $24.68 | $30.09 |
| Montgomery | $17.53 | $37.31 | $48.89 | $64.13 | $27.83 | $34.42 | $39.21 | $43.39 | $13.92 | $20.66 | $26.50 | $32.09 |
| Montour | $15.76 | $32.63 | $42.26 | $55.74 | $25.40 | $31.26 | $36.06 | $40.21 | $12.70 | $18.32 | $23.40 | $28.16 |
| Northampton | $16.76 | $35.00 | $44.70 | $58.55 | $26.87 | $33.68 | $38.47 | $42.93 | $13.44 | $19.50 | $24.56 | $29.46 |
| Northumberland | $16.76 | $35.00 | $44.70 | $58.55 | $26.87 | $33.68 | $38.47 | $42.93 | $13.44 | $19.50 | $24.56 | $29.46 |
| Perry | $16.01 | $32.82 | $41.10 | $52.93 | $26.18 | $32.79 | $37.59 | $41.64 | $13.09 | $18.41 | $22.82 | $26.86 |
| Philadelphia | $17.53 | $36.94 | $48.10 | $62.94 | $27.83 | $34.42 | $39.21 | $43.39 | $13.92 | $20.47 | $26.14 | $31.49 |
| Pike | $18.31 | $36.70 | $47.02 | $62.52 | $27.72 | $34.93 | $39.72 | $45.26 | $13.86 | $20.35 | $25.64 | $31.30 |
| Potter | $14.74 | $30.71 | $39.20 | $50.77 | $24.37 | $30.49 | $35.28 | $39.04 | $12.19 | $17.36 | $21.87 | $25.86 |
| Schuylkill | $14.97 | $31.14 | $40.01 | $51.97 | $24.37 | $30.53 | $35.32 | $39.00 | $12.18 | $17.57 | $22.27 | $26.42 |
| Snyder | $15.46 | $30.77 | $39.04 | $50.38 | $24.93 | $30.77 | $35.56 | $39.34 | $12.47 | $17.39 | $21.79 | $25.68 |
| Somerset | $15.27 | $30.71 | $39.20 | $50.84 | $24.67 | $30.49 | $35.28 | $39.10 | $12.33 | $17.36 | $21.87 | $25.90 |
| Sullivan | $14.74 | $30.92 | $39.61 | $51.97 | $24.72 | $30.49 | $35.28 | $39.54 | $12.36 | $17.46 | $22.07 | $26.42 |
| Susquehanna | $14.80 | $31.36 | $40.16 | $52.14 | $24.54 | $30.82 | $35.62 | $39.36 | $12.27 | $17.68 | $22.35 | $26.50 |
| Tioga | $14.68 | $31.59 | $40.45 | $52.48 | $24.63 | $30.99 | $35.78 | $39.50 | $12.32 | $17.80 | $22.49 | $26.65 |
| Union | $15.15 | $31.16 | $39.53 | $51.35 | $25.37 | $31.04 | $35.83 | $39.90 | $12.68 | $17.58 | $22.04 | $26.13 |
| Venango | $14.58 | $31.32 | $40.41 | $52.18 | $24.44 | $30.49 | $35.28 | $38.53 | $12.22 | $17.66 | $22.47 | $26.51 |
| Warren | $15.08 | $30.80 | $39.38 | $50.82 | $24.48 | $30.49 | $35.28 | $38.81 | $12.24 | $17.40 | $21.96 | $25.89 |
| Washington | $15.43 | $32.97 | $42.77 | $55.98 | $25.36 | $31.42 | $36.21 | $39.89 | $12.68 | $18.48 | $23.66 | $28.27 |
| Wayne | $15.43 | $32.97 | $42.77 | $55.98 | $25.36 | $31.42 | $36.21 | $39.89 | $12.68 | $18.48 | $23.66 | $28.27 |
| Westmoreland | $16.24 | $33.26 | $42.67 | $55.69 | $25.91 | $32.11 | $36.91 | $40.82 | $12.96 | $18.63 | $23.60 | $28.14 |
| Wyoming | $15.16 | $33.44 | $43.84 | $57.79 | $25.25 | $31.36 | $36.15 | $39.95 | $12.62 | $18.72 | $24.17 | $29.11 |
| York | $15.72 | $33.41 | $42.65 | $55.52 | $25.75 | $32.43 | $37.22 | $41.17 | $12.88 | $18.70 | $23.59 | $28.06 |
Marc Stier, executive director of the Pennsylvania Policy Center, released the following statement after the PA House passed HB 1500.
House passage of House Bill 1500 is a major step forward for all working people and businesses in the state of Pennsylvania. Pennsylvanians have been waiting for seventeen years for an increase in the minimum wage and for seven years for the state to embrace a path to a minimum wage of $15 per hour. This long overdue action comes at an ideal time. Employers all over the state are already raising wages to ensure they can find the employees they need. Raising the minimum wage would create a floor under wages that ensures businesses can raise their wages without being put at a competitive disadvantage. Workers making below, and just above, $15 per hour would see their wages go up, which would generate new consumption that would help businesses, create more jobs, and keep our economy growing.
The bill was not everything we hoped for. We expect the General Assembly to return to the issue next year to end the preemption on local governments setting a higher minimum wage than the state level and also to replace the tipped minimum wage with one fair wage.
Despite the limitation of HB 1500, it is a huge achievement. If senators are listening to their constituents, they will pass this bill as soon as possible.
Click here to read a full-screen version, download, and print.
A high minimum wage ensures we have an economy that works for all of us. It protects workers and provides a dignified life.
- The minimum wage is a critical protection for workers—like the right to form unions, the social safety net, and a tax system that asks the rich to pay at a higher rate than the poor. These policies ensure that our economy works for all of us, not just the wealthy owners of huge corporations.
- We show respect for the dignity of work by ensuring all full-time workers are paid a decent wage that allows them to support themselves and their families. Opponents of a higher minimum wage want the work but won’t provide the dignity.
- Since 1947, workers’ share of the benefits of the United States economy has shrunk drastically. But our economy is more productive than ever. If the minimum wage had gone up with productivity increases since 1968, it would be over $23 per hour today. Most of us struggle while the wealthy owners of corporations grow ever richer.
- Our tax dollars subsidize wealthy corporations that fail to pay their workers a living wage by forcing workers to supplement their low wages with social safety net programs.
- Pennsylvania workers have fallen behind because the state hasn’t raised the minimum wage in more than 13 years. It is worth 27% less than it was in 2009, the last time it was raised nationally. Adjusted for inflation, the minimum wage is now worth less than at any time since the mid-1950s.
- We need a higher minimum wage to protect workers whose incomes have fallen further behind as inflation has increased, in part, because corporations have ratcheted up prices to make record profits.
Every state around us is raising the minimum wage!
- Since 2014, 30 states and Washington, DC, have increased their minimum wage, including every state that borders Pennsylvania.
Raising the minimum wage dignifies the work of adults who head families.
- Raising the minimum wage benefits low-income workers, who now make below the proposed minimum wage, and those who make just above it because businesses typically raise the wages of workers making just above the new minimum wage so as not to lose them to competitors.
- KRC’s analysis of $15-per-hour minimum wage proposals shows that more than 80% of the workers who would see a pay raise are over age 18. These workers are disproportionately women and people of color, and many were “essential” workers during the height of the pandemic.
A higher minimum wage will create new jobs.
- Recent research by the NY Federal Reserve, KRC, and UC Berkeley economists is consistent with earlier research showing that raising the minimum wage doesn’t reduce jobs—in fact, it often creates new ones by increasing consumption.
Raising the minimum wage is good for local businesses and the economy—and this is the best possible time to do it.
- Higher wages for workers mean that they and their families will be spending more in their communities, boosting the local economy and helping Pennsylvania businesses. That is why dozens of economists have endorsed a minimum wage increase.
- Many small businesses can’t hire enough workers right now. They want to pay their employees more but are worried about being at a competitive disadvantage to businesses that pay less. Raising the minimum wage would create a higher wage floor, enabling all businesses to find the workers they need.
- Higher wages increase worker morale and productivity. They also reduce turnover and training costs, benefiting local businesses that are being pressed by the higher wholesale costs charged by large corporations.
Would raising the minimum wage increase prices?
Some prices may go up, but wages will increase faster than prices for a number of reasons.
- For example, the cost of a 12-inch, hand-tossed Domino’s pizza averages 1.5% more in the states around PA, even though the minimum wage averages 69% more.
- Wages are only part of the cost of doing business.
- Increased productivity and reduced training costs for employers hold price increases down.
The Impact of the Minimum Wage on the Price of Pizza |
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| Price of 12-inch, hand-tossed or thin-crust Domino’s Pizza | Price relative to Harrisburg | State minimum wage as of January 1, 2023 | Minimum wage relative to Pennsylvania | |
| Harrisburg, PA | $10.99 | – | $7.25 | – |
| Annapolis, MD | $11.99 | 9.10% | $13.25 | 82.76% |
| Albany, NY | $11.49 | 4.55% | $14.20 | 95.86% |
| Trenton, NJ | $10.99 | 0.00% | $14.13 | 94.90% |
| Wilmington, DE | $10.99 | 0.00% | $13.25 | 82.76% |
| Charleston, WV | $10.99 | 0.00% | $8.75 | 20.69% |
| Columbus, Ohio | $10.49 | -4.55% | $10.10 | 39.31% |
| Average difference between PA and surrounding states | 1.52% | 69.38% | ||
Pennsylvanians support a higher minimum wage.
- A May 2022 poll commissioned by the State Innovation Exchange found that 73% of Pennsylvanians support putting the state on a path to a $15-per-hour minimum wage. A majority of Pennsylvanians in every state House and Senate district, including the most Republican districts, agree.
Ending state preemption that prevents local communities from raising their minimum wage is needed to protect workers.
- The cost of living in many Pennsylvania counties—Philadelphia, Allegheny, Pike, and others—is far higher than the state average. Counties should have the option to account for these variations.
“One fair wage,” an end to the tipped minimum wage, is also needed to protect workers.
- In Pennsylvania, employers of workers who customarily receive tips are only required to pay their tipped workers a base wage of $2.83 per hour.
- Forcing workers to rely on tips also encourages sexual harassment in the workplace. One fair wage would protect all workers, especially women, from being abused by customers and employers.
For more information, contact: Marc Stier, Executive Director, Pennsylvania Policy Center; stier@pennpolicy.org, (215) 880-6142.