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State releases analysis of minimum-wage hikes

By Jim T. Ryan
3/3/2008 4:26 PM

1,059 views
The state Department of Labor and Industry today released a statistical analysis of the minimum wage increases implemented last year.

The document breaks down the industries and people affected by the increases using data from the Current Population Survey, a nationwide monthly survey of about 50,000 households – approximately 2,000 in Pennsylvania – conducted by the U.S. Census Bureau for the Bureau of Labor Statistics.

The state minimum wage increased to $6.25 an hour on Jan. 1, 2007. It increased to $7.15 an hour on July 1.

Highlights of the analysis include:

  • Two minimum wage increases in 2007 affected 132,800 workers, or nearly 4 percent of those who make hourly wages. That's more than 2 percent of total employment.

  • Inflation reduces the value of the minimum wage. Adjusting for inflation, the minimum-wage increase to $7.15 will be worth $7.00 in 2008, $6.80 in 2009, and $6.60 in 2010.

  • The average minimum-wage workers tend to be from one or more of the following groups: white, female, 16-24 years old, never married or those whose education ended with high school.

  • The leisure, hospitality and retail trades are most likely to employ workers at or below the minimum wage. These industries employed about 66 percent of all minimum wage earners in 2007.

  • Seventy percent of the hourly workers earning at or below the minimum wage worked part-time in 2007.

    The report can be found here.

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