Over the last 40 years, as productivity has increased steadily and we have created more value per hour worked, that growth has not translated into greater economic security for working people and their families. Wages for most workers have barely grown while the only group to see substantial income growth has been those with the highest incomes.
If the minimum wage had kept pace with productivity growth since 1968 it would be over $18 an hour today - twice its current level in Massachusetts. Increasing the minimum wage towards that level, at least for some larger businesses, could help people who work hard to better support themselves and pay for basic necessities for their families.
The Minimum Wage in Massachusetts: Challenges and Opportunities examines long term wage trends and describes some of the ways employers could adjust to a significant increase in the minimum wage. Recent research indicates that when wages for low wage workers are increased, employers see reduced turnover and training costs, higher productivity and morale and they can implement modest price increases.
To read the full brief, please click HERE.
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