A proposed $15 an hour statewide minimum wage could cost New York State at least 200,000 jobs, according to a report released today by the Empire Center for Public Policy and the American Action Forum.

“Our report shows that a massive increase in the minimum wage would actually hurt the very low-wage, low-skill workers it is supposed to help,” said E.J. McMahon, president of the Empire Center. “The impact on job creation and employment opportunities would be substantial in every region of New York, especially upstate.”

“Pay increases for millions will come at the expense of lost employment opportunities for hundreds of thousands of people,” McMahon said. “That’s an unacceptably high price to pay for a policy that will significantly disrupt labor markets and business conditions throughout the state.”

The report’s authors—Douglas Holtz-Eakin, AAF’s president, and Ben Gitis, its director of labor market policy—examined the potential employment impacts of statewide minimum wage increases to $15 and $12, assuming they would be phased in over three years in New York City and five years in the rest of the state. They used three different research models to produce low, medium and high projected impacts on jobs and net total wage growth.

The prediction that raising the wage to $15 will result in 200,000 fewer jobs statewide was the low-impact scenario based on a methodology developed by the Congressional Budget Office, of which Holtz-Eakin is a former director. Two other models, based on research by academic economists at Texas A&M and the University of California at San Diego, project statewide job losses of 432,500 and 588,800, respectively.

A table providing a regional breakdown of employment impacts under each modeling scenario is posted here.

Less than 7 percent of the people who would see wage increases under a $15 minimum wage are currently below the poverty line, the report said.

The Empire Center is a non-partisan, non-profit, independent think tank based in Albany. The American Action Forum is a non-profit policy institute based in Washington, D.C.

-30-

You may also like

McMahon: $15 Minimum Wage Will Hurt Upstate Most

The statewide $15 minimum wage proposed by Governor Andrew Cuomo would cost New York at least 200,000 jobs, with the most severe impact felt in upstate regions that are already struggling to create jobs, E.J. McMahon, president of the Empire Center, testified today. Read More

Employers: $15 Min Wage Hurts Jobs

The Empire Center for Public Policy has produced a new online video series in which a dozen New York State employers explain how their hiring patterns would be affected by a proposed $15-an-hour minimum wage. Read More

Report: Proposed NY Biofuel Mandate is Wrong for NY

A proposal to mandate the use of biodiesel in home heating oil in New York would raise consumer costs while reducing overall energy efficiency, according to a report jointly released today by the Empire Center for Public Policy and the Manhattan Institute. Read More

New York Ranks Low in Economic Freedom: Study

New York is among the nation’s lowest ranking states when it comes to economic freedom, according to a report that focuses on the United States and 10 Canadian provinces. Read More

Tax Hike Toll Would Be 22,000 Private Jobs, Economist Warns

A proposal to raise New York’s personal income tax rates on high-income households will cost the state 22,000 private-sector jobs if enacted, according to an economic analysis by the Empire Center for Public Policy. Read More

Hydrofracking could increase income by 15 percent

The potential economic gains from natural gas exploration in the Marcellus Shale region in upstate New York are highlighted in a new study documenting the impact of hydrofracking on jobs and income growth in Pennsylvania, where nearly 5,000 wells have been hydrofractured since 2002. Read More

Subscribe

Sign up to receive updates about Empire Center research, news and events in your email.

CONTACT INFORMATION

Empire Center for Public Policy
30 South Pearl St.
Suite 1210
Albany, NY 12207

Phone: 518-434-3100
Fax: 518-434-3130
E-Mail: info@empirecenter.org

About

The Empire Center is an independent, non-partisan, non-profit think tank located in Albany, New York. Our mission is to make New York a better place to live and work by promoting public policy reforms grounded in free-market principles, personal responsibility, and the ideals of effective and accountable government.