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The Real Value of California's New Minimum Wage

Created on May 19, 2016

The Real Value of California's New Minimum Wage

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Read the original report, "California’s Unprecedented Minimum Wage Increase Will Hurt Vulnerable Workers," by James Sherk.

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Because the cost of living in California varies across the state, the impact of its new minimum wage will vary as well. As shown in this map, $15 per hour is less significant in areas with higher costs of living, such as Los Angeles and San Francisco. This also means that businesses in areas with lower costs of living will face greater challenges to remain profitable.

NOTE: Figures are expressed in estimated 2016 dollars and are relative to average U.S. living costs.
SOURCE: Heritage Foundation calculations using median California wage growth data from the Current Population Survey and data on relative living cost by metropolitan area from the National Bureau of Economic Analysis's Regional Price Parities. See Appendix for details.

MAP 1 • IB 4563

Tags: California, minimum-wage