Report: Minimum wage increase would boost Polk County economy
An increase in the minimum wage to $12 or $15 an hour by Polk County would benefit up to 88,000 workers and in turn boost the local economy, according toa report released today by the Iowa Policy Project.
Phased in over three to five years, a minimum wage increase would raise affected workers’ annual income by up to $5,000, according to the report, which uses data from the Economic Policy Institute in Washington, D.C.
The report considers three Polk County scenarios: $12 by 2021, $12 by 2019, and $15 by 2021.
In terms of annual earnings, a boost to $12 by 2019 would be an average annual increase of $3,650 per affected worker, resulting in $230 million in additional income in the local economy.
The $15 scenario would boost incomes on average by $5,000, and produce a total of over $444 million in additional income.
“This in turn would increase spending in local retail and service businesses, boosting economic activity and supporting jobs,” said Peter Fisher, research director for IPP and author of the report.
Of those who would benefit from the higher wage in Polk County, 56 percent are women, 63 to 67 percent work full time, and 37 to 40 percent are age 40 or older, while only 13 percent or fewer are under 20. About 37 percent are parents.
Fisher said studies of moderate increases in the minimum wage have found no discernible effect on jobs. “And this makes sense when you consider the resulting boost in local spending, reduced employee turnover and hiring costs, and the ability of employers to make other adjustments,” he said.
The Polk County Board of Supervisors last month formed a task force to explore raising the minimum wage; Linn County is also considering an increase. Johnson County already has taken this step, with a wage now at $9.15, scheduled to reach $10.10 on Jan. 1.
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