from the Congressional Budget Office
In March, CBO testified before the Senate Committee on Health, Education, Labor, and Pensions about raising the minimum wage. Some committee members submitted further questions for the record, and the CBO responded to these many questions today.
Question. In your estimation, do the benefits of raising the minimum wage outweigh the costs?
Answer. Whether the overall benefits of increasing the minimum wage outweigh the costs is a question for policymakers to decide. The Congressional Budget Office’s report did point out, however, that the benefits and costs would be different for different groups of people. Most low-wage workers would receive higher pay that would increase their family’s income, and some of those families would see their income rise above the federal poverty threshold. But some jobs for low-wage workers would probably be eliminated, and the income of most of the workers who became jobless would fall substantially.....