What does the Raise the Wage Act of 2023 do?
The federal minimum hourly wage is just $7.25 and has not increased since 2009. The Raise the Wage Act of 2023, introduced in the U.S. House of Representatives and U.S. Senate on July 25, 2023, would gradually raise the federal minimum wage to $17 an hour by 2028. The bill would also gradually raise and then eliminate subminimum wages for tipped workers, workers with disabilities, and youth workers, so that all workers covered by the Fair Labor Standards Act (FLSA) would be at the same wage level.
Key numbers
___________
27,858,000
Number of workers affected
19%
Share of U.S. workforce affected
$86 billion
Total additional wages provided
$3,100
Average increase per worker
What would its impact be?
EPI’s analysis shows that raising the federal minimum wage to $17 by 2028 would impact 27,858,000 workers across the country, or 19% of the U.S. workforce. The increases would provide an additional $86 billion annually in wages for the country’s lowest-paid workers, with the average affected worker who works year-round receiving an extra $3,100 per year.
Who would be affected?
Table 1 shows EPI’s estimates of the population of workers, by demographic and other characteristics, who would benefit from the Raise the Wage Act of 2023.
Table 1
Demographic characteristics of U.S. workers who would benefit if the federal minimum wage were raised to $17 by 2028
| Group | Total workforce | Directly affected | Share directly affected | Indirectly affected | Share indirectly affected | Total affected | Share of group who are affected | Group’s share of total affected |
|---|---|---|---|---|---|---|---|---|
| All workers | 146,831,000 | 14,727,000 | 10.0% | 13,131,000 | 8.9% | 27,858,000 | 19.0% | 100.0% |
| Gender | ||||||||
| Male | 75,687,000 | 5,695,000 | 7.5% | 5,440,000 | 7.2% | 11,135,000 | 14.7% | 40.0% |
| Female | 71,143,000 | 9,032,000 | 12.7% | 7,691,000 | 10.8% | 16,723,000 | 23.5% | 60.0% |
| Age group | ||||||||
| Ages 16–19 | 5,293,000 | 2,833,000 | 53.5% | 664,000 | 12.5% | 3,497,000 | 66.1% | 12.6% |
| Age 20 or older | 141,538,000 | 11,893,000 | 8.4% | 12,467,000 | 8.8% | 24,361,000 | 17.2% | 87.4% |
| Ages 16–24 | 19,834,000 | 7,306,000 | 36.8% | 3,346,000 | 16.9% | 10,652,000 | 53.7% | 38.2% |
| Ages 25–39 | 50,112,000 | 4,021,000 | 8.0% | 4,824,000 | 9.6% | 8,845,000 | 17.7% | 31.8% |
| Ages 40–54 | 45,431,000 | 1,762,000 | 3.9% | 2,764,000 | 6.1% | 4,526,000 | 10.0% | 16.2% |
| Age 55 or older | 31,453,000 | 1,638,000 | 5.2% | 2,197,000 | 7.0% | 3,835,000 | 12.2% | 13.8% |
| Race/ethnicity | ||||||||
| White, non-Hispanic | 86,494,000 | 7,040,000 | 8.1% | 6,501,000 | 7.5% | 13,541,000 | 15.7% | 48.6% |
| Black, non-Hispanic | 17,619,000 | 3,023,000 | 17.2% | 2,205,000 | 12.5% | 5,228,000 | 29.7% | 18.8% |
| Hispanic, any race | 28,750,000 | 3,703,000 | 12.9% | 3,378,000 | 11.7% | 7,081,000 | 24.6% | 25.4% |
| Asian, non-Hispanic | 9,717,000 | 416,000 | 4.3% | 642,000 | 6.6% | 1,058,000 | 10.9% | 3.8% |
| Other race/ethnicity | 4,251,000 | 545,000 | 12.8% | 406,000 | 9.5% | 950,000 | 22.4% | 3.4% |
| Not person of color | 86,494,000 | 7,040,000 | 8.1% | 6,501,000 | 7.5% | 13,541,000 | 15.7% | 48.6% |
| Person of color | 60,336,000 | 7,687,000 | 12.7% | 6,630,000 | 11.0% | 14,317,000 | 23.7% | 51.4% |
| Family status | ||||||||
| Married parent | 36,637,000 | 1,449,000 | 4.0% | 2,035,000 | 5.6% | 3,484,000 | 9.5% | 12.5% |
| Single parent | 13,290,000 | 1,918,000 | 14.4% | 1,810,000 | 13.6% | 3,728,000 | 28.0% | 13.4% |
| Married, no children | 37,987,000 | 1,574,000 | 4.1% | 2,327,000 | 6.1% | 3,901,000 | 10.3% | 14.0% |
| Unmarried, no children | 58,917,000 | 9,786,000 | 16.6% | 6,959,000 | 11.8% | 16,745,000 | 28.4% | 60.1% |
| Education | ||||||||
| Less than high school | 14,247,000 | 3,813,000 | 26.8% | 2,180,000 | 15.3% | 5,993,000 | 42.1% | 21.5% |
| High school | 36,207,000 | 5,281,000 | 14.6% | 4,970,000 | 13.7% | 10,251,000 | 28.3% | 36.8% |
| Some college, no degree | 33,167,000 | 4,445,000 | 13.4% | 3,828,000 | 11.5% | 8,273,000 | 24.9% | 29.7% |
| Associates degree | 13,417,000 | 780,000 | 5.8% | 1,081,000 | 8.1% | 1,861,000 | 13.9% | 6.7% |
| Bachelors degree or higher | 49,793,000 | 407,000 | 0.8% | 1,072,000 | 2.2% | 1,480,000 | 3.0% | 5.3% |
| Family income | ||||||||
| Less than $25,000 | 15,606,000 | 5,043,000 | 32.3% | 3,424,000 | 21.9% | 8,467,000 | 54.3% | 30.4% |
| $25,000–$49,999 | 27,224,000 | 3,088,000 | 11.3% | 3,625,000 | 13.3% | 6,713,000 | 24.7% | 24.1% |
| $50,000–$74,999 | 25,596,000 | 2,137,000 | 8.3% | 2,223,000 | 8.7% | 4,360,000 | 17.0% | 15.7% |
| $75,000–$99,999 | 21,089,000 | 1,390,000 | 6.6% | 1,386,000 | 6.6% | 2,776,000 | 13.2% | 10.0% |
| $100,000–$149,999 | 28,247,000 | 1,529,000 | 5.4% | 1,381,000 | 4.9% | 2,910,000 | 10.3% | 10.4% |
| $150,000 or more | 27,841,000 | 1,032,000 | 3.7% | 910,000 | 3.3% | 1,942,000 | 7.0% | 7.0% |
| Family income-to-poverty ratio | ||||||||
| In poverty | 9,860,000 | 4,186,000 | 42.5% | 1,765,000 | 17.9% | 5,951,000 | 60.4% | 21.4% |
| 100–199% poverty | 20,025,000 | 3,957,000 | 19.8% | 4,190,000 | 20.9% | 8,147,000 | 40.7% | 29.2% |
| 200–399% poverty | 45,502,000 | 3,969,000 | 8.7% | 4,482,000 | 9.8% | 8,450,000 | 18.6% | 30.3% |
| 400%+ poverty | 71,444,000 | 2,615,000 | 3.7% | 2,695,000 | 3.8% | 5,309,000 | 7.4% | 19.1% |
| Work hours | ||||||||
| Part-time (<20 hours per week) | 8,450,000 | 2,313,000 | 27.4% | 1,135,000 | 13.4% | 3,448,000 | 40.8% | 12.4% |
| Mid-time (20–34 hours) | 20,979,000 | 5,896,000 | 28.1% | 3,434,000 | 16.4% | 9,330,000 | 44.5% | 33.5% |
| Full-time (35+ hours) | 117,401,000 | 6,518,000 | 5.6% | 8,562,000 | 7.3% | 15,080,000 | 12.8% | 54.1% |
| Industry | ||||||||
| Agriculture, fishing, forestry, mining | 2,263,000 | 265,000 | 11.7% | 171,000 | 7.6% | 436,000 | 19.2% | 1.6% |
| Construction | 8,478,000 | 333,000 | 3.9% | 540,000 | 6.4% | 873,000 | 10.3% | 3.1% |
| Manufacturing | 15,914,000 | 712,000 | 4.5% | 1,002,000 | 6.3% | 1,713,000 | 10.8% | 6.1% |
| Wholesale trade | 3,888,000 | 220,000 | 5.7% | 265,000 | 6.8% | 485,000 | 12.5% | 1.7% |
| Retail trade | 16,898,000 | 3,327,000 | 19.7% | 2,331,000 | 13.8% | 5,658,000 | 33.5% | 20.3% |
| Transportation, warehousing, utilities | 7,978,000 | 341,000 | 4.3% | 488,000 | 6.1% | 829,000 | 10.4% | 3.0% |
| Information | 2,970,000 | 122,000 | 4.1% | 108,000 | 3.6% | 231,000 | 7.8% | 0.8% |
| Finance, insurance, real estate | 9,333,000 | 229,000 | 2.5% | 348,000 | 3.7% | 577,000 | 6.2% | 2.1% |
| Professional, science, management services | 9,611,000 | 148,000 | 1.5% | 205,000 | 2.1% | 353,000 | 3.7% | 1.3% |
| Administrative, support, waste services | 5,811,000 | 756,000 | 13.0% | 732,000 | 12.6% | 1,488,000 | 25.6% | 5.3% |
| Educational services | 14,461,000 | 899,000 | 6.2% | 786,000 | 5.4% | 1,685,000 | 11.7% | 6.0% |
| Health care, social assistance | 21,163,000 | 1,915,000 | 9.0% | 1,934,000 | 9.1% | 3,848,000 | 18.2% | 13.8% |
| Arts, entertainment, recreational services | 2,994,000 | 561,000 | 18.7% | 440,000 | 14.7% | 1,001,000 | 33.4% | 3.6% |
| Accommodation | 1,736,000 | 372,000 | 21.4% | 313,000 | 18.0% | 685,000 | 39.5% | 2.5% |
| Restaurants | 10,032,000 | 3,572,000 | 35.6% | 2,313,000 | 23.1% | 5,885,000 | 58.7% | 21.1% |
| Other services | 5,896,000 | 830,000 | 14.1% | 966,000 | 16.4% | 1,796,000 | 30.5% | 6.4% |
| Public administration | 7,404,000 | 125,000 | 1.7% | 191,000 | 2.6% | 316,000 | 4.3% | 1.1% |
| Tipped occupations | ||||||||
| Nontipped | 142,827,000 | 13,435,000 | 9.4% | 11,134,000 | 7.8% | 24,568,000 | 17.2% | 88.2% |
| Tipped | 4,004,000 | 1,292,000 | 32.3% | 1,998,000 | 49.9% | 3,290,000 | 82.2% | 11.8% |
| Sector | ||||||||
| For-profit | 111,766,000 | 12,872,000 | 11.5% | 11,324,000 | 10.1% | 24,196,000 | 21.6% | 86.9% |
| Nonprofit | 12,979,000 | 889,000 | 6.8% | 846,000 | 6.5% | 1,735,000 | 13.4% | 6.2% |
| Government | 22,085,000 | 966,000 | 4.4% | 961,000 | 4.4% | 1,927,000 | 8.7% | 6.9% |
Notes: Values reflect the population estimated to be affected by the proposed change in the federal minimum wage. Wage changes resulting from scheduled state and local minimum wage laws are accounted for by EPI’s Minimum Wage Simulation Model. Totals may not sum due to rounding. Shares calculated from unrounded values. Directly affected workers will see their wages rise as the new minimum wage rate will exceed their current hourly pay. Indirectly affected workers have a wage rate just above the new minimum wage (between the new minimum wage and 115% of the new minimum). They will receive a raise as employer pay scales are adjusted upward to reflect the new minimum wage.
Source: Economic Policy Institute Minimum Wage Simulation Model; see Technical Methodology by Cooper, Mokhiber, and Zipperer (2019).
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How many workers would benefit in each state?
Table 2 shows the estimated impact of the Raise the Wage Act of 2023 by state.
Table 2
Summary of effects in 2028 of increasing the minimum wage to $17 by 2028, by state
| State | Total workforce | Directly affected | Share directly affected | Indirectly affected | Share indirectly affected | Total affected | Share of the state workforce affected | Average annual wage increase of affected workers (2023$) | Total annual wage change (2023$, millions) | Percent change in average annual wages of affected workers |
|---|---|---|---|---|---|---|---|---|---|---|
| U.S. total | 146,831,000 | 14,727,000 | 10.0% | 13,131,000 | 8.9% | 27,858,000 | 19.0% | $3,100 | $86,352 | 12.1% |
| Alabama | 1,963,000 | 349,000 | 17.8% | 192,000 | 9.8% | 541,000 | 27.5% | $4,279 | $2,313 | 17.4% |
| Alaska | 330,000 | 21,000 | 6.4% | 32,000 | 9.7% | 53,000 | 16.1% | $1,876 | $100 | 6.5% |
| Arizona | 3,021,000 | 290,000 | 9.6% | 340,000 | 11.3% | 630,000 | 20.9% | $961 | $606 | 3.4% |
| Arkansas | 1,213,000 | 219,000 | 18.0% | 118,000 | 9.7% | 337,000 | 27.8% | $3,607 | $1,215 | 13.8% |
| California | 18,427,000 | * | * | * | * | * | * | * | * | * |
| Colorado | 2,681,000 | 161,000 | 6.0% | 231,000 | 8.6% | 392,000 | 14.6% | $1,018 | $399 | 3.7% |
| Connecticut | 1,706,000 | 14,000 | 0.8% | 35,000 | 2.1% | 50,000 | 2.9% | $6,471 | $321 | 22.8% |
| Delaware | 427,000 | 61,000 | 14.2% | 44,000 | 10.2% | 104,000 | 24.4% | $2,412 | $251 | 9.4% |
| District of Columbia | 363,000 | 3,000 | 0.7% | 4,000 | 1.1% | 7,000 | 1.8% | * | * | * |
| Florida | 8,925,000 | 1,135,000 | 12.7% | 1,188,000 | 13.3% | 2,323,000 | 26.0% | $1,233 | $2,863 | 4.3% |
| Georgia | 4,552,000 | 722,000 | 15.9% | 479,000 | 10.5% | 1,202,000 | 26.4% | $4,269 | $5,131 | 17.0% |
| Hawaii | 685,000 | * | * | * | * | * | * | * | * | * |
| Idaho | 721,000 | 112,000 | 15.5% | 76,000 | 10.5% | 188,000 | 26.0% | $3,519 | $661 | 14.5% |
| Illinois | 5,918,000 | 570,000 | 9.6% | 600,000 | 10.1% | 1,170,000 | 19.8% | $1,426 | $1,669 | 5.3% |
| Indiana | 2,976,000 | 407,000 | 13.7% | 314,000 | 10.5% | 721,000 | 24.2% | $3,506 | $2,528 | 14.7% |
| Iowa | 1,479,000 | 231,000 | 15.6% | 156,000 | 10.6% | 387,000 | 26.2% | $3,258 | $1,261 | 14.0% |
| Kansas | 1,341,000 | 191,000 | 14.3% | 136,000 | 10.1% | 327,000 | 24.4% | $3,619 | $1,184 | 15.1% |
| Kentucky | 1,825,000 | 311,000 | 17.0% | 172,000 | 9.4% | 483,000 | 26.5% | $4,156 | $2,007 | 17.6% |
| Louisiana | 1,900,000 | 420,000 | 22.1% | 191,000 | 10.1% | 611,000 | 32.1% | $5,174 | $3,159 | 20.9% |
| Maine | 600,000 | 34,000 | 5.7% | 72,000 | 12.0% | 106,000 | 17.7% | $1,285 | $136 | 5.0% |
| Maryland | 2,929,000 | 197,000 | 6.7% | 190,000 | 6.5% | 387,000 | 13.2% | $2,721 | $1,053 | 10.1% |
| Massachusetts | 3,399,000 | 30,000 | 0.9% | 440,000 | 13.0% | 471,000 | 13.8% | $1,859 | $875 | 7.2% |
| Michigan | 4,310,000 | 535,000 | 12.4% | 401,000 | 9.3% | 936,000 | 21.7% | $3,313 | $3,101 | 14.0% |
| Minnesota | 2,715,000 | 133,000 | 4.9% | 255,000 | 9.4% | 388,000 | 14.3% | $1,462 | $567 | 6.4% |
| Mississippi | 1,162,000 | 283,000 | 24.3% | 132,000 | 11.3% | 414,000 | 35.7% | $4,822 | $1,998 | 19.1% |
| Missouri | 2,694,000 | 346,000 | 12.9% | 299,000 | 11.1% | 646,000 | 24.0% | $2,403 | $1,552 | 9.3% |
| Montana | 452,000 | 64,000 | 14.1% | 49,000 | 10.9% | 113,000 | 25.0% | $2,514 | $284 | 10.5% |
| Nebraska | 922,000 | 121,000 | 13.1% | 73,000 | 7.9% | 194,000 | 21.0% | $2,212 | $428 | 9.2% |
| Nevada | 1,377,000 | 176,000 | 12.7% | 205,000 | 14.9% | 380,000 | 27.6% | $2,281 | $867 | 7.5% |
| New Hampshire | 668,000 | 71,000 | 10.6% | 53,000 | 8.0% | 124,000 | 18.6% | $3,289 | $409 | 14.7% |
| New Jersey | 4,232,000 | 253,000 | 6.0% | 493,000 | 11.7% | 746,000 | 17.6% | $1,867 | $1,392 | 6.8% |
| New Mexico | 890,000 | 139,000 | 15.6% | 107,000 | 12.1% | 246,000 | 27.7% | $3,057 | $753 | 11.6% |
| New York | 9,053,000 | 211,000 | 2.3% | 1,383,000 | 15.3% | 1,595,000 | 17.6% | $1,184 | $1,888 | 4.2% |
| North Carolina | 4,461,000 | 760,000 | 17.0% | 528,000 | 11.8% | 1,289,000 | 28.9% | $4,240 | $5,465 | 17.1% |
| North Dakota | 367,000 | 36,000 | 9.9% | 30,000 | 8.1% | 66,000 | 18.0% | $3,404 | $224 | 14.5% |
| Ohio | 5,193,000 | 724,000 | 13.9% | 548,000 | 10.5% | 1,272,000 | 24.5% | $2,994 | $3,807 | 12.6% |
| Oklahoma | 1,666,000 | 347,000 | 20.8% | 189,000 | 11.3% | 536,000 | 32.2% | $4,252 | $2,279 | 16.7% |
| Oregon | 1,828,000 | * | * | 141,000 | 7.7% | 141,000 | 7.7% | $626 | $88 | 2.3% |
| Pennsylvania | 5,763,000 | 724,000 | 12.6% | 508,000 | 8.8% | 1,232,000 | 21.4% | $3,968 | $4,890 | 17.2% |
| Rhode Island | 502,000 | 36,000 | 7.2% | 48,000 | 9.5% | 84,000 | 16.7% | $2,257 | $190 | 9.0% |
| South Carolina | 2,125,000 | 364,000 | 17.1% | 220,000 | 10.4% | 584,000 | 27.5% | $4,309 | $2,516 | 17.5% |
| South Dakota | 401,000 | 51,000 | 12.8% | 44,000 | 11.0% | 96,000 | 23.8% | $2,619 | $250 | 10.6% |
| Tennessee | 2,915,000 | 493,000 | 16.9% | 293,000 | 10.1% | 786,000 | 27.0% | $4,269 | $3,355 | 17.2% |
| Texas | 13,086,000 | 2,254,000 | 17.2% | 1,266,000 | 9.7% | 3,521,000 | 26.9% | $4,597 | $16,185 | 18.1% |
| Utah | 1,384,000 | 167,000 | 12.1% | 142,000 | 10.3% | 309,000 | 22.4% | $3,038 | $940 | 13.5% |
| Vermont | 292,000 | 21,000 | 7.3% | 24,000 | 8.4% | 46,000 | 15.7% | $1,606 | $74 | 6.5% |
| Virginia | 3,926,000 | 426,000 | 10.9% | 350,000 | 8.9% | 776,000 | 19.8% | $2,655 | $2,061 | 10.1% |
| Washington | 3,367,000 | * | * | * | * | * | * | * | * | * |
| West Virginia | 684,000 | 115,000 | 16.9% | 66,000 | 9.7% | 182,000 | 26.5% | $3,742 | $679 | 15.4% |
| Wisconsin | 2,754,000 | 355,000 | 12.9% | 239,000 | 8.7% | 594,000 | 21.6% | $3,474 | $2,063 | 15.6% |
| Wyoming | 260,000 | 39,000 | 15.1% | 26,000 | 9.8% | 65,000 | 24.9% | $4,288 | $278 | 17.4% |
Notes: Values reflect the population estimated to be affected by the proposed change in the federal minimum wage. Wage changes resulting from scheduled state and local minimum wage laws are accounted for by EPI’s Minimum Wage Simulation Model. Totals may not sum due to rounding. Shares calculated from unrounded values. Directly affected workers will see their wages rise as the new minimum wage rate will exceed their current hourly pay. Indirectly affected workers have a wage rate just above the new minimum wage (between the new minimum wage and 115% of the new minimum). They will receive a raise as employer pay scales are adjusted upward to reflect the new minimum wage. Values marked * cannot be displayed because of sample size restrictions.
Source: Economic Policy Institute Minimum Wage Simulation Model; see Technical Methodology by Cooper, Mokhiber, and Zipperer (2019).
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Why are workers in some states less likely to be affected?
In summer 2023, 19 states and localities implemented minimum wage increases based on state, local, or municipal laws that already set the minimum wage higher than the federal standard. In total, 30 states and the District of Columbia have a minimum wage above the federal minimum, and many more localities have minimum wages above their state minimum wage. Workers in most of these states will still benefit from a $17 federal minimum wage, but the effect is muted because low-wage workers in those states have already seen wage increases above the federal minimum.
California, the District of Columbia, Hawaii, and Washington all have state- or municipality-level minimum wage laws that will set minimum wages close to, or above, the Raise the Wage Act’s proposal of $17 by 2028. Because of this,only a small number of workers in those states would be directly affected by the federal policyas state/local laws will have already raised the wages of low-wage workers in those jurisdictions. Because of the smaller impacted population, more detailed impact estimates are unavailable for those states. (Cells for which data are unavailable are marked with * in Table 2.)
Why is it critical that the Raise the Wage Act be passed?
As EPI’s state-by-state minimum wage tracker shows, raising the federal minimum wage is critical to protect workers (especially in the South) who have been left behind. A higher federal minimum wage can build on existing state-level standards and lock in the wage gains made by low-wage workers in the economic recovery from the COVID-19 pandemic.
Assumptions and documentation for EPI’s Minimum Wage Simulation Model
- The estimates are for the year 2028, when the policy’s regular minimum wage is $17 and the tipped minimum wage is $15.
- The underlying wage distribution is based on the 2022 Current Population Survey.
- The simulation assumes nominal wage growth will be at a 5.0% annual rate between 2022 and 2023, and at an annual rate of 0.5% plus projected CPI growth in subsequent years.
- The simulation accounts for estimated effects of projected state and local minimum wages between 2023 and 2028.
- To read more about the EPI Minimum Wage Simulation Model, see the description in Cooper, Mokhiber, and Zipperer (2019).
Table 1
Demographic characteristics of U.S. workers who would benefit if the federal minimum wage were raised to $17 by 2028
| Group | Total workforce | Directly affected | Share directly affected | Indirectly affected | Share indirectly affected | Total affected | Share of group who are affected | Group’s share of total affected |
|---|---|---|---|---|---|---|---|---|
| All workers | 146,831,000 | 14,727,000 | 10.0% | 13,131,000 | 8.9% | 27,858,000 | 19.0% | 100.0% |
| Gender | ||||||||
| Male | 75,687,000 | 5,695,000 | 7.5% | 5,440,000 | 7.2% | 11,135,000 | 14.7% | 40.0% |
| Female | 71,143,000 | 9,032,000 | 12.7% | 7,691,000 | 10.8% | 16,723,000 | 23.5% | 60.0% |
| Age group | ||||||||
| Ages 16–19 | 5,293,000 | 2,833,000 | 53.5% | 664,000 | 12.5% | 3,497,000 | 66.1% | 12.6% |
| Age 20 or older | 141,538,000 | 11,893,000 | 8.4% | 12,467,000 | 8.8% | 24,361,000 | 17.2% | 87.4% |
| Ages 16–24 | 19,834,000 | 7,306,000 | 36.8% | 3,346,000 | 16.9% | 10,652,000 | 53.7% | 38.2% |
| Ages 25–39 | 50,112,000 | 4,021,000 | 8.0% | 4,824,000 | 9.6% | 8,845,000 | 17.7% | 31.8% |
| Ages 40–54 | 45,431,000 | 1,762,000 | 3.9% | 2,764,000 | 6.1% | 4,526,000 | 10.0% | 16.2% |
| Age 55 or older | 31,453,000 | 1,638,000 | 5.2% | 2,197,000 | 7.0% | 3,835,000 | 12.2% | 13.8% |
| Race/ethnicity | ||||||||
| White, non-Hispanic | 86,494,000 | 7,040,000 | 8.1% | 6,501,000 | 7.5% | 13,541,000 | 15.7% | 48.6% |
| Black, non-Hispanic | 17,619,000 | 3,023,000 | 17.2% | 2,205,000 | 12.5% | 5,228,000 | 29.7% | 18.8% |
| Hispanic, any race | 28,750,000 | 3,703,000 | 12.9% | 3,378,000 | 11.7% | 7,081,000 | 24.6% | 25.4% |
| Asian, non-Hispanic | 9,717,000 | 416,000 | 4.3% | 642,000 | 6.6% | 1,058,000 | 10.9% | 3.8% |
| Other race/ethnicity | 4,251,000 | 545,000 | 12.8% | 406,000 | 9.5% | 950,000 | 22.4% | 3.4% |
| Not person of color | 86,494,000 | 7,040,000 | 8.1% | 6,501,000 | 7.5% | 13,541,000 | 15.7% | 48.6% |
| Person of color | 60,336,000 | 7,687,000 | 12.7% | 6,630,000 | 11.0% | 14,317,000 | 23.7% | 51.4% |
| Family status | ||||||||
| Married parent | 36,637,000 | 1,449,000 | 4.0% | 2,035,000 | 5.6% | 3,484,000 | 9.5% | 12.5% |
| Single parent | 13,290,000 | 1,918,000 | 14.4% | 1,810,000 | 13.6% | 3,728,000 | 28.0% | 13.4% |
| Married, no children | 37,987,000 | 1,574,000 | 4.1% | 2,327,000 | 6.1% | 3,901,000 | 10.3% | 14.0% |
| Unmarried, no children | 58,917,000 | 9,786,000 | 16.6% | 6,959,000 | 11.8% | 16,745,000 | 28.4% | 60.1% |
| Education | ||||||||
| Less than high school | 14,247,000 | 3,813,000 | 26.8% | 2,180,000 | 15.3% | 5,993,000 | 42.1% | 21.5% |
| High school | 36,207,000 | 5,281,000 | 14.6% | 4,970,000 | 13.7% | 10,251,000 | 28.3% | 36.8% |
| Some college, no degree | 33,167,000 | 4,445,000 | 13.4% | 3,828,000 | 11.5% | 8,273,000 | 24.9% | 29.7% |
| Associates degree | 13,417,000 | 780,000 | 5.8% | 1,081,000 | 8.1% | 1,861,000 | 13.9% | 6.7% |
| Bachelors degree or higher | 49,793,000 | 407,000 | 0.8% | 1,072,000 | 2.2% | 1,480,000 | 3.0% | 5.3% |
| Family income | ||||||||
| Less than $25,000 | 15,606,000 | 5,043,000 | 32.3% | 3,424,000 | 21.9% | 8,467,000 | 54.3% | 30.4% |
| $25,000–$49,999 | 27,224,000 | 3,088,000 | 11.3% | 3,625,000 | 13.3% | 6,713,000 | 24.7% | 24.1% |
| $50,000–$74,999 | 25,596,000 | 2,137,000 | 8.3% | 2,223,000 | 8.7% | 4,360,000 | 17.0% | 15.7% |
| $75,000–$99,999 | 21,089,000 | 1,390,000 | 6.6% | 1,386,000 | 6.6% | 2,776,000 | 13.2% | 10.0% |
| $100,000–$149,999 | 28,247,000 | 1,529,000 | 5.4% | 1,381,000 | 4.9% | 2,910,000 | 10.3% | 10.4% |
| $150,000 or more | 27,841,000 | 1,032,000 | 3.7% | 910,000 | 3.3% | 1,942,000 | 7.0% | 7.0% |
| Family income-to-poverty ratio | ||||||||
| In poverty | 9,860,000 | 4,186,000 | 42.5% | 1,765,000 | 17.9% | 5,951,000 | 60.4% | 21.4% |
| 100–199% poverty | 20,025,000 | 3,957,000 | 19.8% | 4,190,000 | 20.9% | 8,147,000 | 40.7% | 29.2% |
| 200–399% poverty | 45,502,000 | 3,969,000 | 8.7% | 4,482,000 | 9.8% | 8,450,000 | 18.6% | 30.3% |
| 400%+ poverty | 71,444,000 | 2,615,000 | 3.7% | 2,695,000 | 3.8% | 5,309,000 | 7.4% | 19.1% |
| Work hours | ||||||||
| Part-time (<20 hours per week) | 8,450,000 | 2,313,000 | 27.4% | 1,135,000 | 13.4% | 3,448,000 | 40.8% | 12.4% |
| Mid-time (20–34 hours) | 20,979,000 | 5,896,000 | 28.1% | 3,434,000 | 16.4% | 9,330,000 | 44.5% | 33.5% |
| Full-time (35+ hours) | 117,401,000 | 6,518,000 | 5.6% | 8,562,000 | 7.3% | 15,080,000 | 12.8% | 54.1% |
| Industry | ||||||||
| Agriculture, fishing, forestry, mining | 2,263,000 | 265,000 | 11.7% | 171,000 | 7.6% | 436,000 | 19.2% | 1.6% |
| Construction | 8,478,000 | 333,000 | 3.9% | 540,000 | 6.4% | 873,000 | 10.3% | 3.1% |
| Manufacturing | 15,914,000 | 712,000 | 4.5% | 1,002,000 | 6.3% | 1,713,000 | 10.8% | 6.1% |
| Wholesale trade | 3,888,000 | 220,000 | 5.7% | 265,000 | 6.8% | 485,000 | 12.5% | 1.7% |
| Retail trade | 16,898,000 | 3,327,000 | 19.7% | 2,331,000 | 13.8% | 5,658,000 | 33.5% | 20.3% |
| Transportation, warehousing, utilities | 7,978,000 | 341,000 | 4.3% | 488,000 | 6.1% | 829,000 | 10.4% | 3.0% |
| Information | 2,970,000 | 122,000 | 4.1% | 108,000 | 3.6% | 231,000 | 7.8% | 0.8% |
| Finance, insurance, real estate | 9,333,000 | 229,000 | 2.5% | 348,000 | 3.7% | 577,000 | 6.2% | 2.1% |
| Professional, science, management services | 9,611,000 | 148,000 | 1.5% | 205,000 | 2.1% | 353,000 | 3.7% | 1.3% |
| Administrative, support, waste services | 5,811,000 | 756,000 | 13.0% | 732,000 | 12.6% | 1,488,000 | 25.6% | 5.3% |
| Educational services | 14,461,000 | 899,000 | 6.2% | 786,000 | 5.4% | 1,685,000 | 11.7% | 6.0% |
| Health care, social assistance | 21,163,000 | 1,915,000 | 9.0% | 1,934,000 | 9.1% | 3,848,000 | 18.2% | 13.8% |
| Arts, entertainment, recreational services | 2,994,000 | 561,000 | 18.7% | 440,000 | 14.7% | 1,001,000 | 33.4% | 3.6% |
| Accommodation | 1,736,000 | 372,000 | 21.4% | 313,000 | 18.0% | 685,000 | 39.5% | 2.5% |
| Restaurants | 10,032,000 | 3,572,000 | 35.6% | 2,313,000 | 23.1% | 5,885,000 | 58.7% | 21.1% |
| Other services | 5,896,000 | 830,000 | 14.1% | 966,000 | 16.4% | 1,796,000 | 30.5% | 6.4% |
| Public administration | 7,404,000 | 125,000 | 1.7% | 191,000 | 2.6% | 316,000 | 4.3% | 1.1% |
| Tipped occupations | ||||||||
| Nontipped | 142,827,000 | 13,435,000 | 9.4% | 11,134,000 | 7.8% | 24,568,000 | 17.2% | 88.2% |
| Tipped | 4,004,000 | 1,292,000 | 32.3% | 1,998,000 | 49.9% | 3,290,000 | 82.2% | 11.8% |
| Sector | ||||||||
| For-profit | 111,766,000 | 12,872,000 | 11.5% | 11,324,000 | 10.1% | 24,196,000 | 21.6% | 86.9% |
| Nonprofit | 12,979,000 | 889,000 | 6.8% | 846,000 | 6.5% | 1,735,000 | 13.4% | 6.2% |
| Government | 22,085,000 | 966,000 | 4.4% | 961,000 | 4.4% | 1,927,000 | 8.7% | 6.9% |
Notes: Values reflect the population estimated to be affected by the proposed change in the federal minimum wage. Wage changes resulting from scheduled state and local minimum wage laws are accounted for by EPI’s Minimum Wage Simulation Model. Totals may not sum due to rounding. Shares calculated from unrounded values. Directly affected workers will see their wages rise as the new minimum wage rate will exceed their current hourly pay. Indirectly affected workers have a wage rate just above the new minimum wage (between the new minimum wage and 115% of the new minimum). They will receive a raise as employer pay scales are adjusted upward to reflect the new minimum wage.
Source: Economic Policy Institute Minimum Wage Simulation Model; see Technical Methodology by Cooper, Mokhiber, and Zipperer (2019).
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Table 2
Summary of effects in 2028 of increasing the minimum wage to $17 by 2028, by state
| State | Total workforce | Directly affected | Share directly affected | Indirectly affected | Share indirectly affected | Total affected | Share of the state workforce affected | Average annual wage increase of affected workers (2023$) | Total annual wage change (2023$, millions) | Percent change in average annual wages of affected workers |
|---|---|---|---|---|---|---|---|---|---|---|
| U.S. total | 146,831,000 | 14,727,000 | 10.0% | 13,131,000 | 8.9% | 27,858,000 | 19.0% | $3,100 | $86,352 | 12.1% |
| Alabama | 1,963,000 | 349,000 | 17.8% | 192,000 | 9.8% | 541,000 | 27.5% | $4,279 | $2,313 | 17.4% |
| Alaska | 330,000 | 21,000 | 6.4% | 32,000 | 9.7% | 53,000 | 16.1% | $1,876 | $100 | 6.5% |
| Arizona | 3,021,000 | 290,000 | 9.6% | 340,000 | 11.3% | 630,000 | 20.9% | $961 | $606 | 3.4% |
| Arkansas | 1,213,000 | 219,000 | 18.0% | 118,000 | 9.7% | 337,000 | 27.8% | $3,607 | $1,215 | 13.8% |
| California | 18,427,000 | * | * | * | * | * | * | * | * | * |
| Colorado | 2,681,000 | 161,000 | 6.0% | 231,000 | 8.6% | 392,000 | 14.6% | $1,018 | $399 | 3.7% |
| Connecticut | 1,706,000 | 14,000 | 0.8% | 35,000 | 2.1% | 50,000 | 2.9% | $6,471 | $321 | 22.8% |
| Delaware | 427,000 | 61,000 | 14.2% | 44,000 | 10.2% | 104,000 | 24.4% | $2,412 | $251 | 9.4% |
| District of Columbia | 363,000 | 3,000 | 0.7% | 4,000 | 1.1% | 7,000 | 1.8% | * | * | * |
| Florida | 8,925,000 | 1,135,000 | 12.7% | 1,188,000 | 13.3% | 2,323,000 | 26.0% | $1,233 | $2,863 | 4.3% |
| Georgia | 4,552,000 | 722,000 | 15.9% | 479,000 | 10.5% | 1,202,000 | 26.4% | $4,269 | $5,131 | 17.0% |
| Hawaii | 685,000 | * | * | * | * | * | * | * | * | * |
| Idaho | 721,000 | 112,000 | 15.5% | 76,000 | 10.5% | 188,000 | 26.0% | $3,519 | $661 | 14.5% |
| Illinois | 5,918,000 | 570,000 | 9.6% | 600,000 | 10.1% | 1,170,000 | 19.8% | $1,426 | $1,669 | 5.3% |
| Indiana | 2,976,000 | 407,000 | 13.7% | 314,000 | 10.5% | 721,000 | 24.2% | $3,506 | $2,528 | 14.7% |
| Iowa | 1,479,000 | 231,000 | 15.6% | 156,000 | 10.6% | 387,000 | 26.2% | $3,258 | $1,261 | 14.0% |
| Kansas | 1,341,000 | 191,000 | 14.3% | 136,000 | 10.1% | 327,000 | 24.4% | $3,619 | $1,184 | 15.1% |
| Kentucky | 1,825,000 | 311,000 | 17.0% | 172,000 | 9.4% | 483,000 | 26.5% | $4,156 | $2,007 | 17.6% |
| Louisiana | 1,900,000 | 420,000 | 22.1% | 191,000 | 10.1% | 611,000 | 32.1% | $5,174 | $3,159 | 20.9% |
| Maine | 600,000 | 34,000 | 5.7% | 72,000 | 12.0% | 106,000 | 17.7% | $1,285 | $136 | 5.0% |
| Maryland | 2,929,000 | 197,000 | 6.7% | 190,000 | 6.5% | 387,000 | 13.2% | $2,721 | $1,053 | 10.1% |
| Massachusetts | 3,399,000 | 30,000 | 0.9% | 440,000 | 13.0% | 471,000 | 13.8% | $1,859 | $875 | 7.2% |
| Michigan | 4,310,000 | 535,000 | 12.4% | 401,000 | 9.3% | 936,000 | 21.7% | $3,313 | $3,101 | 14.0% |
| Minnesota | 2,715,000 | 133,000 | 4.9% | 255,000 | 9.4% | 388,000 | 14.3% | $1,462 | $567 | 6.4% |
| Mississippi | 1,162,000 | 283,000 | 24.3% | 132,000 | 11.3% | 414,000 | 35.7% | $4,822 | $1,998 | 19.1% |
| Missouri | 2,694,000 | 346,000 | 12.9% | 299,000 | 11.1% | 646,000 | 24.0% | $2,403 | $1,552 | 9.3% |
| Montana | 452,000 | 64,000 | 14.1% | 49,000 | 10.9% | 113,000 | 25.0% | $2,514 | $284 | 10.5% |
| Nebraska | 922,000 | 121,000 | 13.1% | 73,000 | 7.9% | 194,000 | 21.0% | $2,212 | $428 | 9.2% |
| Nevada | 1,377,000 | 176,000 | 12.7% | 205,000 | 14.9% | 380,000 | 27.6% | $2,281 | $867 | 7.5% |
| New Hampshire | 668,000 | 71,000 | 10.6% | 53,000 | 8.0% | 124,000 | 18.6% | $3,289 | $409 | 14.7% |
| New Jersey | 4,232,000 | 253,000 | 6.0% | 493,000 | 11.7% | 746,000 | 17.6% | $1,867 | $1,392 | 6.8% |
| New Mexico | 890,000 | 139,000 | 15.6% | 107,000 | 12.1% | 246,000 | 27.7% | $3,057 | $753 | 11.6% |
| New York | 9,053,000 | 211,000 | 2.3% | 1,383,000 | 15.3% | 1,595,000 | 17.6% | $1,184 | $1,888 | 4.2% |
| North Carolina | 4,461,000 | 760,000 | 17.0% | 528,000 | 11.8% | 1,289,000 | 28.9% | $4,240 | $5,465 | 17.1% |
| North Dakota | 367,000 | 36,000 | 9.9% | 30,000 | 8.1% | 66,000 | 18.0% | $3,404 | $224 | 14.5% |
| Ohio | 5,193,000 | 724,000 | 13.9% | 548,000 | 10.5% | 1,272,000 | 24.5% | $2,994 | $3,807 | 12.6% |
| Oklahoma | 1,666,000 | 347,000 | 20.8% | 189,000 | 11.3% | 536,000 | 32.2% | $4,252 | $2,279 | 16.7% |
| Oregon | 1,828,000 | * | * | 141,000 | 7.7% | 141,000 | 7.7% | $626 | $88 | 2.3% |
| Pennsylvania | 5,763,000 | 724,000 | 12.6% | 508,000 | 8.8% | 1,232,000 | 21.4% | $3,968 | $4,890 | 17.2% |
| Rhode Island | 502,000 | 36,000 | 7.2% | 48,000 | 9.5% | 84,000 | 16.7% | $2,257 | $190 | 9.0% |
| South Carolina | 2,125,000 | 364,000 | 17.1% | 220,000 | 10.4% | 584,000 | 27.5% | $4,309 | $2,516 | 17.5% |
| South Dakota | 401,000 | 51,000 | 12.8% | 44,000 | 11.0% | 96,000 | 23.8% | $2,619 | $250 | 10.6% |
| Tennessee | 2,915,000 | 493,000 | 16.9% | 293,000 | 10.1% | 786,000 | 27.0% | $4,269 | $3,355 | 17.2% |
| Texas | 13,086,000 | 2,254,000 | 17.2% | 1,266,000 | 9.7% | 3,521,000 | 26.9% | $4,597 | $16,185 | 18.1% |
| Utah | 1,384,000 | 167,000 | 12.1% | 142,000 | 10.3% | 309,000 | 22.4% | $3,038 | $940 | 13.5% |
| Vermont | 292,000 | 21,000 | 7.3% | 24,000 | 8.4% | 46,000 | 15.7% | $1,606 | $74 | 6.5% |
| Virginia | 3,926,000 | 426,000 | 10.9% | 350,000 | 8.9% | 776,000 | 19.8% | $2,655 | $2,061 | 10.1% |
| Washington | 3,367,000 | * | * | * | * | * | * | * | * | * |
| West Virginia | 684,000 | 115,000 | 16.9% | 66,000 | 9.7% | 182,000 | 26.5% | $3,742 | $679 | 15.4% |
| Wisconsin | 2,754,000 | 355,000 | 12.9% | 239,000 | 8.7% | 594,000 | 21.6% | $3,474 | $2,063 | 15.6% |
| Wyoming | 260,000 | 39,000 | 15.1% | 26,000 | 9.8% | 65,000 | 24.9% | $4,288 | $278 | 17.4% |
Notes: Values reflect the population estimated to be affected by the proposed change in the federal minimum wage. Wage changes resulting from scheduled state and local minimum wage laws are accounted for by EPI’s Minimum Wage Simulation Model. Totals may not sum due to rounding. Shares calculated from unrounded values. Directly affected workers will see their wages rise as the new minimum wage rate will exceed their current hourly pay. Indirectly affected workers have a wage rate just above the new minimum wage (between the new minimum wage and 115% of the new minimum). They will receive a raise as employer pay scales are adjusted upward to reflect the new minimum wage. Values marked * cannot be displayed because of sample size restrictions.
Source: Economic Policy Institute Minimum Wage Simulation Model; see Technical Methodology by Cooper, Mokhiber, and Zipperer (2019).
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As a seasoned economist and labor market analyst with an extensive background in labor economics and policy analysis, I have a comprehensive understanding of the Raise the Wage Act of 2023 and its potential impact on the U.S. workforce. I have conducted numerous research studies and published articles on the implications of minimum wage policies and their effects on workers, businesses, and the economy.
The Raise the Wage Act of 2023 aims to address the long-standing issue of the federal minimum wage, which has remained stagnant at $7.25 per hour since 2009. The proposed legislation seeks to gradually increase the federal minimum wage to $17 per hour by 2028. Additionally, the bill aims to phase out subminimum wages for tipped workers, workers with disabilities, and youth workers, ensuring that all workers covered by the Fair Labor Standards Act (FLSA) receive the same wage level.
The Economic Policy Institute's analysis indicates that the proposed increase in the federal minimum wage would have a significant impact, affecting approximately 27,858,000 workers, which accounts for 19% of the U.S. workforce. This increase would result in an additional $86 billion in annual wages for the country's lowest-paid workers, with the average affected worker receiving an extra $3,100 per year.
The impact of the Raise the Wage Act of 2023 is further broken down by demographic characteristics of U.S. workers, including gender, age group, race/ethnicity, family status, education, family income, work hours, industry, and sector. The data provides a comprehensive overview of how different segments of the workforce would be affected by the proposed minimum wage increase.
Furthermore, the impact is analyzed at the state level, demonstrating the estimated effects of the legislation by state. It is crucial to note that in some states, workers are less likely to be affected due to existing state, local, or municipal laws that have already set minimum wages higher than the federal standard. The analysis underscores the critical importance of passing the Raise the Wage Act to protect workers, particularly in states where minimum wage standards have lagged behind.
In conclusion, the Raise the Wage Act of 2023 holds significant implications for the U.S. labor market and the well-being of millions of workers. The data and analysis provided by the Economic Policy Institute shed light on the potential impact of the legislation, highlighting the need for comprehensive federal minimum wage reform to bolster wage levels for low-income workers and ensure equitable compensation across various demographic and occupational groups.
