Raising the Minimum Wage in Pennsylvania

November 30, 2015 | Economics and Other

The FY 2015-16 Executive Budget includes a proposal that (1) increases the state minimum wage from $7.25 to $10.10 and (2) automatically adjusts future minimum wage levels to offset inflation. This research brief presents an analysis of the potential impact of that proposal. The analysis uses data from the Current Population Survey published by the U.S. Bureau of Labor Statistics to estimate the number of workers who would be directly or potentially affected by the proposal. It then uses responsiveness or elasticity parameters from the U.S. Congressional Budget Office to determine the number of workers who may receive a higher wage and those who may lose employment. The Independent Fiscal Office issues this research brief to fulfill its statutory obligation to provide an economic analysis of all economic and revenue proposals included in the Executive Budget.


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