1. I am Lori Pfingst, Research & Policy Director for the WA State Budget & Policy Center, an organization that conducts research to advance the well-being of all Washingtonians.
Before I jump into updates on what has happened with the minimum wage, I think its important to ground us in why the push for the minimum wage is so strong right now.

2. Income inequality is at an historical high – it is higher than it was than the Great Depression, and approaching levels experienced before the Great Recession.

3. Wage inequality is one contributor to income inequality
Wages have been stagnant for lower and middle class workers for 35 years – this chart shows wages by decile, and I have highlighted those at the 10th, 50th, and 90th percentiles:
Lower and middle class wages have never risen much above 1979 levels – and have experienced some pretty significant drops in value over that time period
Those at the top of the wage scale – 90th percentile – have done much better with increases that diverge pretty dramatically
These trends are part of why there is a focus on raising the minimum wage across the country

4. Because of these trends, the minimum wage workers of today look different than they did 40 years ago
90% are over the age of 20
Half work full-time
They are from every race – just over half are white
One in four have children
One in three have some college or more

5. And no matter who you are earning the minimum wage, its difficult to make ends meet
Individuals may scrape by – unable to save for the future; but families are losing ground
A parent with two children earning current minimum wage would have to work over 100 hours per week to meet the most basic of needs – nothing extra, just enough to cover food, shelter, transportation, child care, and medical care.

6. The cost of meeting basic needs varies around the state, but no where does minimum wage cut it

7. There is a movement across the country to raise state minimum wages - minimum wage bills were introduced in 38 states in (cities & counties too)
24 states & Washington DC actually raised the minimum wage in 2014 (map) – among those:
9 were due to automatic indexing to inflation like we have in WA
4 were due to voters approving ballot initiatives
10 were due to legislation enacted

8. Among the 14 states that passed via ballot initiative or legislative action:
Minimum wage is being raised in one to four annual steps
Increases range from 13% to 39%
To put in perspective for Washington state – last year HB 2672 aimed to raise the minimum wage over three years, which would be a 29% increase if it was enacted – well within the ranges being considered around the country.
Increases like those above have been evaluated quite substantially in the research literature – of the many studies performed, the vast majority show no discernible decrease in employment

9. A study released in 2009 mapped the findings from 64 studies conducted from 1972 to 2007 and found that changes in employment following minimum wage increases centered around zero elasticity.
A meta-study performed in 2010 analyzing all the state and county borders in the country with different minimum wages showed no employment changes either
These analyses have been bolstered by the most recent wave of minimum wage research as well
BOTTOM LINE: Raising the minimum wage to $12 would boost the earnings of over 550,000 workers in Washington state. This would be welcome news, as WA is one of three states where poverty rose last year. A higher minimum wage is one tool in what should be a broader strategy to increase economic security among children and families.