Table 2.  A Comparison of Three Methodologies for Estimating the Number of Workers Who Would Benefit from a Minimum Wage Increase

Keystone Research Center Updated

PA Department of Labor and Industry

Commonwealth Foundation

Date of CPS data used

  • 2005 for workers earning $5.15 to $7.14
  • 2004 for workers earning $7.15 to $8.14

2005

7/2004 to 6/2005

Does data used include workers with hourly earnings imputed from weekly earnings?

Yes

No

Yes

Is the change estimated in the number of workers earning $5.15 to $7.14 between the time of data collection and January 1, 2007?

Yes – applies annual average changes  between 2001 and 2004/05 to project data to 1/2007.  (Method takes into account both wage inflation and increases in the size of the labor force.)

No

Yes – assumes annual wage inflation of 2.5 percent.  (Method does not consider impact of employment growth.)

Does the organization  estimate the number of workers above the new minimum wage who receive a ripple effect bump up in wages?

Yes –number estimated as those in the range $7.15 to $8.14

No

No