Wages

The vast majority of American households’ income comes from what workers receive in their paychecks – which is why wages are so important. Unfortunately, wages for most workers grew exceptionally slowly between 1979 and 2012, despite productivity—which essentially measures the economy’s potential for providing rising living standards for all—rising 64 percent. In other words, most Americans, even those with college degrees, have only been treading water—despite working more productively (and being better educated) than ever.

EARN groups provide key research and policy analysis describing how these trends have played out at the state and local levels, and what policymakers can do about it.

Publications

Economic Opportunity Agenda for Georgia Women

  • August 25, 2016
  • Staff Report

The economic status of women in Georgia is a key factor in the overall health and future of the state’s economy. Women represent a majority of Georgia’s adult population and nearly half of the workforce. In more than half of all Georgia households with children, women are primary or co-breadwinners.

Despite their importance, women face a host of barriers keeping them and Georgia’s economy, from reaching their full potential. Women working full-time in Georgia earn, on average, 70 cents for every dollar white men earn. The gender wage gap is even wider once part-time workers are taken into account.

Georgia stands to gain a lot by removing these barriers to equal earnings for working women and their families. The state’s economy could add a staggering $14.4 billion if all working women in Georgia earned the same amount of money as men living in similar population areas, of the same age, education level and working the same number of hours. Even more money could be added to Georgia’s economy if women who are now not working got more support, including child care and health care, which can allow them to rejoin the workforce or work more hours.

Increasing earnings for Georgia women can also provide a powerful boost to working families themselves. Lower earnings for Georgia women make it more likely they and their families will live in poverty, which carries a host of negative implications for the future of the state’s workforce and overall well-being. Poverty for Georgia’s working women could fall by nearly half if women earned the same amount of money as men in comparable circumstances. Lower pay also makes it harder for women to afford health care which is essential to their heath and overall well-being.

Policy interventions are collectively one of the most important tools for helping to close the gender earnings gap and boost Georgia’s economy.

Restoring the Value of Work

This November, Maine voters will consider a ballot question that would raise the state minimum wage incrementally to $12 an hour by 2020 and gradually increase the subminimum wage for tipped workers until it equals the minimum wage for non-tipped workers by 2026. The Maine Center for Economic Policy analyzed the potential immediate and longterm impacts of this ballot initiative and concludes that raising Maine’s minimum wage will have positive net impacts for workers, businesses, and Maine families.

Confront the ‘parasite economy’ by raising the minimum wage

Every three months, the ADP Research Institute releases its Workforce Vitality Index, a measure of private sector job and wage growth. For the past two quarters, Washington state has led the nation in growing jobs and boosting wages, far outpacing the national average and such states as Texas, Florida, and California.

Why does this matter? Because Washington state has one of the highest minimum wages in the nation at $9.47 an hour. And since April 2015, the city of Seattle has been moving towards a $15 minimum wage, with the current minimum ranging from $10.50 to $13 depending on employer size. As the Workforce Vitality Index shows, businesses in Seattle and Washington state are thriving and generating more employment. Seattle’s restaurant industry — which fought the wage laws fiercely — is continuing to add jobs.

The simple explanation is laid out by Nick Hanauer, a successful entrepreneur and venture capitalist from Washington state, in an insightful article in The American Prospect magazine titled “Confronting the Parasite Economy.” Hanauer argues that paying workers decent wages is good for business and good for the economy as a whole. He writes, “When workers have more money, businesses have more customers. And when businesses have more customers, they create more jobs.” To take the restaurant industry as an example, higher wages lead to more disposable income that workers and their families can spend on eating out in restaurants.