California’s massive state-wide jump to a $15 minimum wage could conservatively cost around 400,000 potential jobs, according to a new Employment Policy Institute study.
“California Dreamin’ of Higher Wages,” strives to evaluate what the state’s jump to a $15 minimum wage will mean when it fully kicks in in 2022 by attempting to contextualize it with the empirical effects of previous minimum wage increases in the state going back to 1990.
The results are pretty dire. They believe that by the time the minimum wage fully kicks in the state will have lost 400,000 jobs as a consequence. These job losses will not be evenly distributed throughout the state’s workforce. They will hit food service, retail, and agriculture jobs the hardest. Overall, this a four percent loss of jobs out of workforce estimated at around 10 million.
David MacPherson of Trinity University and William Even of Miami University have attempted to model the likely impacts in a study published by the Institute, a nonprofit research organization that’s focused on the impact of labor policies on entry-level jobs.