Frank Manzo IV
October 25, 2018
La Grange: An increase to Illinois’ state minimum wage would grow the state’s economy and boost the paychecks of as many as 1.4 million workers by up to $6,000, according to new research from the Illinois Economic Policy Institute (ILEPI) and Project for Middle Class Renewal at the University of Illinois Urbana-Champaign.
The policy brief assesses the economic impacts of three different proposals (increasing to $10 an hour by 2019, to $13 an hour by 2022, and to $15 an hour by 2024) to raise the state’s current minimum wage, which has been set at $8.25 an hour since 2010.
“Increasing the minimum wage is a win-win-win for workers, taxpayers, and the economy,” said ILEPI Policy Director Frank Manzo IV. “It means higher wages and less poverty for workers, more spending across the economy, higher tax revenues, and less reliance on welfare programs.”
Among the three scenarios studied, researchers found that a minimum wage increase would increase paychecks for 6%-23% of the state’s total workforce.
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The report finds that the increased consumer spending associated with wage increases would grow the economy by $5 billion-$19 billion per year.
The researchers note that wage increases have not produced the negative impacts on employment often claimed by opponents. A recent study found that job growth in the City of Chicago, which began increasing its minimum wage in 2014, has more than kept pace with surrounding suburbs that made no changes to their minimum wage policies. Additionally, researchers note that 9 of the 13 states with minimum wages of at least $10 per hour have unemployment rates that are the same or lower than Illinois.
