Last month, state Sen. Kenny Yuko, Democrat of Richmond Heights, introduced Senate Bill 25, a bill to raise the Ohio minimum wage to $10.10 beginning January 2016.
Last week, the Employment Policies Institute (EPI) released study of the effects of a $10.10 minimum wage in Ohio. The study estimates that over 21,000 jobs would be lost in Ohio from such a move.
The Study Shows that Women Would Bear Brunt of Job Loss
The study was conducted by economists David Macpherson of Trinity University and William Even of Miami University in Ohio. Their analysis applies the same methodology that the Congressional Budget Office used last year in its estimate that 500,000 jobs would be lost nationwide as a result of a federal minimum wage increase to $10.10.
The study is based on Census Bureau data, and the methodology allows the researchers to pinpoint which demographics would be most affected by the proposed wage hike. They find that women would make up a disproportionate amount of the job loss, accounting for 58 percent of the total, or about 12,800 jobs.
Analyzing the household characteristics of those impacted by the proposed wage hike, the researchers also find that a move to $10.10 would be poorly-targeted and favor higher income families. Over 60 percent of those who benefit are second earners or live at home with family or relatives. Their average family income is over $55,000 per year.
View the analysis here.
"The 25-percent minimum wage hike that labor activists in Ohio are calling for would bring pain rather than gain for many less-skilled jobseekers, said Michael Saltsman, EPI research director. "With young adults in the state still facing a 20.5 percent unemployment rate, policymakers in Columbus should proceed with extreme caution."
The Employment Policies Institute is a nonprofit research organization dedicated to studying public policy issues surrounding employment growth. In particular, EPI focuses on issues that affect entry-level employment. EPI receives support from businesses, foundations, and individuals. Learn more at www.epionline.org.