Executive Summary

Employment conduct an impact study of his proposal to establish a city-wide minimum wage of $13.25 an hour by 2017, phased in over three steps. This report therefore examines the effects of the minimum wage policy on Los Angeles workers, businesses and the overall economy. Drawing on a variety of government data sources, we find the following: About 567,000 workers – or 37 percent of workers covered by the policy – would receive a pay raise under the proposed law by 2017. • 39 percent of female workers and 35 percent of male workers would receive pay increases. Workers ’ hourly wages and annual incomes would rise, resulting in a total increase in aggregate earnings of $1.8 billion (in 2014 dollars) by 2017. • Hourly wages of affected workers would rise by an average of $1.89 per hour. • Average annual earnings would increase by 21 percent, or about $3,200 per year. Adults, workers of color, and working poor families would see significant benefits from the proposed policy. • 97 percent of affected workers are in their twenties or older, and 59 percent of the worker