If the federal government increased the minimum wage by 39% (from $7.25 to $10.10 per hour), how much would the average income of families with earnings below the poverty threshold increase?
According to the Congressional Budget Office, increasing the minimum wage by 39% would increase the average income of families below the poverty threshold by 1%. This is because "many low-wage workers are not members of low-income families." Hence, "just 19 percent" of the wage increases "would accrue to families with earnings below the poverty threshold, whereas 29 percent would accrue to families earning more than three times the poverty threshold."
DocumentationMinimum Wage Effects