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Obamacare, Minimum Wage Hike Would Increase Labor Costs

Created on November 22, 2013

Obamacare, Minimum Wage Hike Would Increase Labor Costs

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READ the original report, "Obamacare and a Minimum Wage Hike Pricing Many Unskilled Workers Out of Their Jobs."

A proposal to increase the federal minimum wage, coupled with existing employer mandates from Obamacare, would increase the minimum cost to employ a worker by $4.38 per hour (53 percent).

Keywords: minimum wage, labor, Obamacare, taxes, employer penalty, employer

Note: Figures are averages for rates across U.S. states, weighted by private-sector employment in each state. Several states have minimum wages above the federal level in 2013. Both Massachusetts and the District of Columbia set their minimum wages above the federal rate whenever the federal rate exceeds the previously set state rate. This causes the national average in 2016 to slightly exceed the $10.10-per-hour proposed federal rate. Source: Authors’ calculations using data from the U.S. Department of Labor and Medical Expenditure Panel Survey. See footnotes 4 and 6 for details.

CHART 1 • IB 4095 • heritage.org