San Francisco Becomes First in Nation with $10 Minimum Wage (and the Sky Isn't Going to Fall)

[marmar]

AlterNet / By John Schmitt

San Francisco Becomes First in Nation with $10 Minimum Wage (and the Sky Isn't Going to Fall)
The business community is screaming that the higher wages will "cost jobs," but the data suggest otherwise.

December 30, 2011 |


On January 1, the minimum wage in San Francisco will cross the psychological threshold of $10 an hour. An automatic cost-of-living adjustment built into city law will raise the wage floor 3.2 percent, from its current $9.92 to $10.24. Predictably, employers have been warning that the increase will cost jobs. In fact, a great deal of economic evidence suggests otherwise.

Last March, my CEPR colleague, David Rosnick, and I finished a detailed study of the employment impact of the first three years of the San Francisco minimum wage. Back in early 2004, San Francisco established a city-wide minimum wage of $8.50 --25 percent higher than the $6.75 California state minimum wage at the time and 65 percent higher than the prevailing federal minimum of $5.15.

We analyzed employment patterns in a range of industries with a high share of low-wage workers, including fast food and retail. We compared trends in wages and employment in San Francisco before and after the increase with trends over the same period in San Francisco's adjacent suburbs and, separately, in nearby Oakland, two areas where the minimum wage was unchanged.

To rule out statistical flukes, we looked at the impact after one year, then two years, then three years. We also examined the impact on low-wage employers, regardless of industry, and we isolated the impact on small employers (fewer than 10 employees and 10 to 24 employees). .............(more)

The complete piece is at: http://www.alternet.org/economy/153620/san_francisco_becomes_first_in_nation_with_%2410_minimum_wage_%28and_the_sky_isn%27t_going_to_fall%29/

[Justice wanted]

1. OMG! that would be a living wage in some areas in this country. I've heard San Francisco has a

high cost of living. I'm glad for those living in the area.

[xchrom]

2. I heart San Francisco. Nt

[Thaddeus Kosciuszko]

3. California Demographic Shift: More People Leaving Than Moving In

http://articles.latimes.com/2011/nov/27/local/la-me-california-move-20111127

[drm604]

4. Your point being what?

From reading the article you linked to, it doesn't appear to be the San Fransisco minimum wage that is driving them out.

[Thaddeus Kosciuszko]

6. Their cost of living is 135.1% of the national average, the highest in the nation (except Hawaii).

http://www.costoflivingbystate.org/

[provis99]

7. again, what is your point?

I'm surprised San Francisco is only 135% of the average; I would have guessed it was closer to 300%.

[Gormy Cuss]

8. Why yes, and it's even higher in the city of San Francisco.

That's why having a minimum wage higher than the state minimum is a good thing. Even at $10.24/hr it's well below the estimated living wage of $15.00.

And BTW, even waiters make the minimum wage here. It's state law. Guess what? There's no shortage of affordable dining in the city.

[arcane1]

5. One more reason to love this town!