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The Proposed Minimum Wage Law for Los Angeles: Economic Impacts and Policy Options

  • Author(s): Reich, Michael;
  • Jacobs, Ken;
  • Bernhardt, Annette;
  • Perry, Ian
  • et al.
Abstract

The Los Angeles City Council is considering a citywide minimum wage increase to $13.25 by 2017 and $15.25 by 2019, followed by annual increases indexed to inflation. In this prospective study, we assess the economic impact of the proposal on workers, businesses and the city’s economy, and analyze a range of policy design options.

Our below findings are based on a mid-range scenario for future wage and inflation growth in Los Angeles. If actual economic growth turns out to be stronger or weaker than in this scenario, our assessment would change accordingly.

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