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pmcr-ilepi-chicago-minimum-wage-study-final

43252Frank Manzo IV, MPPPolicy Director Illinois Economic Policy InstituteThe Effects of the Chicago Minimum Wage Ordinance: Higher Incomes with Littl

pmcr-ilepi-chicago-minimum-wage-study-finalle to No Impact on Employment Hours, and Businesses in the First Two YearsRobert Bruno, PhDDirectorProject for Middle Class Renewal University of Illi

nois or Urbana-ChampaignRobert Habans, PhDPostdoctoral Research Associate Project for Middle Class Renewal University of Illinois of Urbana-Champaignn pmcr-ilepi-chicago-minimum-wage-study-final

SCHOOL OF LABOR & EMPLOYMENT RELATIONSUNIVERSITY OF ILLINOIS AT URBANA-CHAMPAIGNitThe Effects of the Chicago Minimum Wage OrdinanceABOUT THE AUTHORSF

pmcr-ilepi-chicago-minimum-wage-study-final

rank Manzo IV. MPP is the Policy Director of the Illinois Economic Policy Institute (ILEPI). He earned a Master of Public Policy from the University o

43252Frank Manzo IV, MPPPolicy Director Illinois Economic Policy InstituteThe Effects of the Chicago Minimum Wage Ordinance: Higher Incomes with Littl

pmcr-ilepi-chicago-minimum-wage-study-finaland an Advanced Certificate of Labor Studies from the University of Illinois. He specializes in labor market analysis, prevailing wage laws, economic

development, infrastructure investment, the low-wage labor force, and public finance. He can be contacted at fiuaiizo@illmoisepi.org.Robert Bruno. PhD pmcr-ilepi-chicago-minimum-wage-study-final

is a Professor at the University of Illinois at Urbana-Champaign School of Labor and Employment Relations and the Director of the School's Labor Educ

pmcr-ilepi-chicago-minimum-wage-study-final

ation Program. He also directs the Project for Middle Class Renewal at the University of Illinois at Urbana-Champaign. His research focuses broadly on

43252Frank Manzo IV, MPPPolicy Director Illinois Economic Policy InstituteThe Effects of the Chicago Minimum Wage Ordinance: Higher Incomes with Littl

pmcr-ilepi-chicago-minimum-wage-study-finallitical Science from Bowling Green State University. He can be contacted at bbnmo@illmois.edu.Robert Habans. PhD is a Postdoctoral Research Associate

at the Project for Middle Class Renewal at the University of Illinois at Urbana-Champaign. His research engages with a range of topics broadly related pmcr-ilepi-chicago-minimum-wage-study-final

to urban development, local economic transformation. and work and employment. He earned his Doctor of Philosophy in Urban Planning and Policy from th

pmcr-ilepi-chicago-minimum-wage-study-final

e University of Illinois at Chicago. He also holds degrees from the University of California. Berkeley, and the University of New Orleans He can be co

43252Frank Manzo IV, MPPPolicy Director Illinois Economic Policy InstituteThe Effects of the Chicago Minimum Wage Ordinance: Higher Incomes with Littl

pmcr-ilepi-chicago-minimum-wage-study-finaled 44 to 5 in favor of gradually raising the minimum wage to $13.00 per hour in the city to increase earnings for 410.000 Chicago workers. In its firs

t two years when the minimum wage increased to $10.00 an hour and subsequently to $10.50 an hour the Chicago Minimum Wage Ordinance has already booste pmcr-ilepi-chicago-minimum-wage-study-final

d incomes for at least 330.000 workers in the city.Overall, the higher minimum wage has been associated with an increase in worker incomes but little

pmcr-ilepi-chicago-minimum-wage-study-final

to no impact on employment or the number of private business establishments. -\n assessment of outcomes from 2010 through 2016 against both the Illino

43252Frank Manzo IV, MPPPolicy Director Illinois Economic Policy InstituteThe Effects of the Chicago Minimum Wage Ordinance: Higher Incomes with Littl

pmcr-ilepi-chicago-minimum-wage-study-final reveals that the Chicago Minimum Wage Ordinance has largely achieved its intended puiposcs.The Chicago Minimum Wage Ordinance has been associated wit

h:•A 2.5 percent increase in incomes for Chicago workers, a 1.0 percent reduction in working hours, and no impact on either the unemployment rale or t pmcr-ilepi-chicago-minimum-wage-study-final

he growth of private business establishments in the city.•Reduced income inequality, as incomes rose by 2.7 percent for the lowest-paid workers compar

pmcr-ilepi-chicago-minimum-wage-study-final

ed Io a gain of 2.3 percent for the median worker.•A larger impact on workers employed in the nonprofit sector, where annual incomes increased by 5.2

43252Frank Manzo IV, MPPPolicy Director Illinois Economic Policy InstituteThe Effects of the Chicago Minimum Wage Ordinance: Higher Incomes with Littl

pmcr-ilepi-chicago-minimum-wage-study-final.50 below the state minimum wage.•Higher consumer demand among low-income households, which indirectly created new jobs and offset any direct negative

impact on employmentAfter the minimum wage hikes, incomes were boosted most for more than 330,000 total workers in low-paying occupations and industr pmcr-ilepi-chicago-minimum-wage-study-final

ies:•Workers in building and grounds cleaning and maintenance occupations, such as janitors and maids, experienced a 6.1 percent increase in incomes.•

pmcr-ilepi-chicago-minimum-wage-study-final

Workers 111 office and administrative support occupations, such as secretaries and record clerks, experienced a 3.3 percent increase 111 incomes.•Work

43252Frank Manzo IV, MPPPolicy Director Illinois Economic Policy InstituteThe Effects of the Chicago Minimum Wage Ordinance: Higher Incomes with Littl

pmcr-ilepi-chicago-minimum-wage-study-final111 the "other services” industry, a miscellaneous group that includes workers at car washes and nail salons, experienced a 10.2 percent increase in i

ncomes.•However, the Chicago Minimum Wage Ordinance was not statistically associated with higher annual incomes for workers in food preparation and se pmcr-ilepi-chicago-minimum-wage-study-final

rving occupations in the city.To raise worker incomes, reduce income inequality, grow Illinois' population, and ensure that workcis are paid a wage co

pmcr-ilepi-chicago-minimum-wage-study-final

mmensurate with the cost of living, six public jxiliey actions are recommended.1.1 he City of Chicago should expand coverage of the minimum wage to in

43252Frank Manzo IV, MPPPolicy Director Illinois Economic Policy InstituteThe Effects of the Chicago Minimum Wage Ordinance: Higher Incomes with Littl

43252Frank Manzo IV, MPPPolicy Director Illinois Economic Policy InstituteThe Effects of the Chicago Minimum Wage Ordinance: Higher Incomes with Littl

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