��app Studies Impact of Increasing Minimum Wage in Colorado

Author(s)

��app

News •

In the Community •

September 13, 2016

In November, Colorado��voters��will be asked whether the minimum wage in the state should be raised to $12 an hour. Currently,��Colorado’s minimum wage is $8.31 an hour.��If approved,��Amendment 70��would��raise the minimum wage in increments until it reaches $12 an hour in 2020.

��app��faculty members��, from the��, and��, who holds the Miller Chair of Applied Economics at the��,��conducted a study that��took a close look at what impact increasing the minimum wage would have in Colorado. The research looked closely at how income inequality and childcare prices might be��affected.

�ٱ�'��(CWC) sponsored the research, as part of its new focus on advancing women through initiatives such as convening collaborative research of this kind.

Among the key findings: A��minimum-wage increase��would result in Colorado’s gross domestic product growing��by $400 million, and incomes would��increase for 20 percent of households in Colorado.

��

My focus is looking at how communities in Colorado and Denver are impacted by the policy decisions made in the state. Prof. Jennifer Greenfield, Graduate School of Social Work

An increase in the minimum wage would have a significant positive impact on women and their families, lifting many working women and their children out of poverty. In Colorado, women are breadwinners in nearly half of households with children under��the��age of 18, and women make up more than half of the minimum-wage workforce in the state.

In "The Impact of a $12.00 Minimum Wage on Women in Colorado,"��Strauss and Greenfield also found that minimum-wage rates have not been the principal��driver of prices for��childcare��in other areas of the country. As a result, in cities like Seattle and Oakland, prices for childcare have not risen��in response to��minimum-wage��increases.��They predict similar results��in Colorado, especially��in the Denver��metropolitan area,��where��childcare��prices are currently the sixth��highest in the country.

While ��app is not endorsing Amendment��70,��Greenfield��and Strauss’��research indicates��that��a minimum-wage increase would be a net positive for minimum-wage earners and the state of Colorado. It would increase earnings, strengthen the economy��and reduce��economic inequality in our state.

��

Our research shows that the proposed increase to the Colorado minimum wage will increase consumer spending. Prof. Jack Strauss, Daniels College of Business

“The ��app is deeply concerned about the community and city where we live,” Greenfield says. “Being from the Graduate School of Social Work,��my focus is looking at how communities in Colorado and Denver, particularly communities of color��and��communities that live with��high rates of��poverty, are impacted by the policy decisions made in the state. This was a very interesting project for us and one that we��really wanted to be involved in.”

Critics of Amendment��70��argue that raising the minimum wage would result in job loss and the closure of many businesses.

“Contrary to other��reports, our research shows that the proposed increase to the Colorado minimum wage will��increase consumer spending, thereby strengthening the economy and likely driving job growth, not job loss,” Strauss says.��His research focuses on applied economic analysis.

The��CWC��at the ��app, in conjunction with the��, released the study today.

“With women comprising more than half of the state’s minimum-wage workforce,��and people of color overrepresented among minimum-wage earners, we felt it was important to understand the full range of implications for women and families in Colorado,” says Lauren Y. Casteel, president and CEO of Women’s Foundation of Colorado, which initiated��the research with��CWC.��“We see from this research that an increase in the minimum wage will have a significant positive impact on women and their families and will��help address longstanding income inequality for women and people of color in Colorado.”

The study��was funded by the newly formed CWC Collaboratory, with additional support from the ��app Faculty Senate’s Faculty Research Fund. To read the complete report,��.

��app