March 31, 2014
An Economic Brief from the University Research Center at the Mississippi Institutions of Higher Learning entitled “Raising the minimum wage in Mississippi: An econometric model” is well worth reading.
Here’s the Executive Summary:
Recently, President Obama called for an increase in the Federal minimum wage. Congress had also responded by introducing the Fair Minimum Wage Act of 2013 (S. 460). That legislation if enacted will increase the minimum wage in three steps, from $7.25 to $10.10 per hour. The rate will then be indexed to inflate on each year thereafter. In addition, the legislation will increase the required cash wage for tipped workers in annual 85 cent increases, from today’s $2.13 per hour until the tip credit reaches 70 percent of the regular minimum wage. Several other US Senate and House bills including S. 1737, H.R. 1010 and 3746, have also been introduced to increase the minimum wage. None have been enacted to date. The President also issued an Executive Order raising the minimum wage for Federal Contractors to $10.10. Using the Regional Economic Models, Inc. Mississippi model PI+ V1.5.3, it is estimated that initially 1,766 jobs will be lost in the fi rst year, rising to 9,139 by 2028 then beginning a slow increase in jobs over the next 30 years, absent any other economic change in the economy.