Data Source: Current Population Survey Outgoing Rotation Group files from June 2007 to May 2008. Calculations based on the increase from $5.85 an hour to $6.55 an hour, which represents the second step in the federal minimum wage hike that was passed in 2007. The federal minimum wage will go up to $7.25 on July 24, 2009.
The average family income of United States employees who would 'benefit' from
the new $6.55 minimum wage is nearly $44,635. The 70 cent bump that went into effect on July 24, 2008, is the second step in a 41% increase in the starting wage.
According to U.S. Census Bureau data, fully 85%
of employees in United States whose wages would be increased by the proposed minimum wage hike either live with their
parents or another relative, live alone, or have a working spouse. Just 15%
are sole earners in families with children, and each of these sole earners has access to supplemental
income through the Earned Income Tax Credit.
Regardless of the economic conditions that will be facing the country next summer, the federal minimum wage will rise again next July, making it more difficult for the low-skilled workforce to find a job.
Distribution of Workers Affected by the new $6.55 Minimum Wage