January 25, 2019

Economic Effects of Enacting the Raise the Wage Act on Small Businesses and the U.S. Economy



NFIB Research Center conducted a study in January of 2019 to find the “Economic Effects of Enacting the Raise the Wage Act on Small Businesses and the U.S. Economy.” The Raise the Wage Act increases the federal minimum wage in stages from $7.25 per hour to $15.00 per hour over the years 2019-2024. This report analyzes the potential economic impact of enacting the Raise the Wage Act and imposing these mandated wage increases upon employers. Using the Business Size Insight Module (BSIM), a dynamic, multi-region model based on the widely-used Regional Economic Models, Inc. (REMI) structural economic forecasting and¬†policy analysis model, we estimate that during the period spanning 2019 and 2029, the Raise the Wage Act would reduce private-sector employment by over 1.6 million jobs and produce a cumulative U.S. real output loss of more than $2 trillion.

To read the full study: Economic Effects of Enacting the Raise the Wage Act on Small Businesses and the U.S. Economy