By Payroll and Entitlements Editorial Staff
A Congressional Budget Office report finds that increasing the federal minimum wage to $10, $12, or $15 per hour by 2025 would have two principal effects on low-wage workers: For most, earnings and family income would increase, which would lift some families out of poverty; but other low-wage workers would become jobless, and their family income would fall, in some cases, below the poverty threshold.
$15 an hour boost. The report found that in an average week in 2025, the $15 option would boost the wages of 17 million workers who would otherwise earn less than $15 per hour. Another 10 million workers otherwise earning slightly more than $15 per hour might see their wages rise as well.
But according to the CBO’s median estimate, 1.3 million other workers would become jobless. There is a two-thirds chance that the change in employment would be between about zero and a decrease of 3.7 million workers.
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