SEATTLE MINIMUM WAGE STUDY - The Stranger · 4/18/2016 · Workers Expect “Everything Will Go Up” ... March - April 2015 April - December 2015 January - February 2016 Source:

SEATTLE MINIMUM WAGE STUDY

Seattle City Council Briefing

April 18, 2016

Daniel J. Evans School of Public Policy & GovernanceUniversity of Washington Box 353055Seattle, WA 98195

School of Social WorkUniversity of Washington Box 354900Seattle, WA 98195

School of Public HealthUniversity of Washington Box 357230Seattle, WA 98195

EMPLOYER SURVEY

WORKER INTERVIEWS

PRICE COLLECTION

EMPLOYER SURVEY

• 567 total respondents

• 88% reported <500 employees

• 55% consider themselves

“family-owned”

• 10% franchises

• 11% non-profits

Survey Respondents

0%

5%

10%

15%

20%

25%

Woman-owned Minority-owned Immigrant-owned

WOMEN, MINORITY, AND IMMIGRANT OWNERSHIP AMONG RESPONDENTS

Source: The Seattle Minimum Wage Study: Report on Baseline Employer Survey and Worker Interviews, April 2016.

“Based on your understanding of the Seattle minimum wage ordinance, what is the minimum wage that you have to pay employees working in Seattle as of April 1, 2015?”

EMPLOYER SURVEY

Perceived Wage

5%

86%

8%

MORE THAN 500 EMPLOYEESN=57

Under Accurate Over


6%

79%

15%

FEWER THAN 500 EMPLOYEESN=425

Under Accurate Over

“Have you made or do you intend to make any of the following changes to accommodate this new policy?

EMPLOYER SURVEY

Source: The Seattle Minimum Wage Study: Report on Baseline Employer Survey and Worker Interviews, April 2016.Figures do not sum to 100% because of item non-response.

11%

11%

15%

25%

25%

27%

30%

30%

59%

62%

80%

78%

76%

73%

65%

63%

61%

58%

58%

30%

26%

10%

Contract out work

Withdraw from Seattle

Eliminate another benefit

Add health care benefits

Encourage health care plan enrollment

Limit raises or decrease wages

Add service charges or fees

Reduce the number of employees

Raise any wages over $11

Raise prices on goods or services

Raise wages

Have done or plan to do Do NOT plan to do this

EMPLOYER SURVEYMost common planned changes by Industry


88% 85%

59%

80%

44%

60%59%

43%48%

74%

49%

61%

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Raise wages for one or more Seattleemployees

Raise prices on goods or services Increase wages for workers earning$11-15/hour

Food & AccomodationN=232

Retail & TradeN=140

ManufacturingN=44

All Other SectorsN=151

“Do you anticipate any of the following happening due to the new minimum wage policy?”

EMPLOYER SURVEY

Anticipated changes

Source: The Seattle Minimum Wage Study: Report on Baseline Employer Survey and Worker Interviews, April 2016.Figures do not sum to 100% because of item non-response.

21.9%

30.0%

34.0%

40.4%

42.2%

64.9%

56.1%

51.7%

45.7%

45.3%

Improved productivity among minimumwage workers

Lower turnover among minimum wageworkers

Diminished morale or productivity forworkers earning $11-$15/hour

More applicants for minimum wage jobs

Improved morale among minimum wageworkers

This will probably or definitely happen

This will probably or definitely NOT happen

EMPLOYER SURVEY

WORKER INTERVIEWS

PRICE COLLECTION

Worker Interview Study


• Following 55 workers for 3 years during the minimum wage implementation

• Yearly in-depth interviews

• Short follow-up calls between interviews

53%31%

16%

TIMING OF WAVE 1 INTERVIEWS

Feb-Mar 2015 April-May 2015 Oct-Nov 2015

Diverse Sample of Workers

• 55 low-wage workers with children

• Living across the city

• Hourly wages: $9.47-$14.70

• Most common types of work:

• Caregiving

• Childcare & Teaching

• Food service


Worker Awareness of the Law is Often Vague

10

%

62

%

29

%

13

%

78

%

9%

5%

35

%

60

%

NONE VAGUE DETAILED

Full sample Immigrant U.S. born

“We have just kind (of) often heard that there’s gonna be a minimum wage increase to $15.00 an hour. We just wanna know when this is gonna start. How are they gonna start this?”

-Kang, Janitor

“I know they say it was last year or this year, I’m not really sure...I heard they say it, but I never seen what exactly happened…No one’s getting what they say last year. Like $15.00 should be the minimum wage of work.”

-Sharifa, Child care providerSource: The Seattle Minimum Wage Study: Report on Baseline Employer Survey and Worker Interviews, April 2016. Names are pseudonyms.

Worker Opinions of the Law are Positive or Ambivalent

“I think it’s a great idea because if you really think about it, especially in Seattle, rent is high, and by getting $10.00 if you calculate it, you work forty hours per week, what you're getting is not enough.”

-Edris, Caregiver

“...nursing assistance is a hard job. It's a very...dangerous job. Receiving at $12.00 per hour is some kind of...unfair.”

-Riza, Nursing assistant

Source: The Seattle Minimum Wage Study: Report on Baseline Employer Survey and Worker Interviews, April 2016. Names are pseudonyms.

Workers Expect “Everything Will Go Up”

“I think that, as soon as it all goes up, everything else is going to go up. Our gas is going to have to go up again. My rent is not going to be as cheap. With making that much you might not even need Section 8 or food stamps, supposedly.”

-Nina, Food service worker

“[My life will be] probably the same because the rate increase and then the living expenses increase as a result…More pay, but I have to pay more for stuff.”

-Binh, assembly line worker

Source: The Seattle Minimum Wage Study: Report on Baseline Employer Survey and Worker Interviews, April 2016. Names are pseudonyms.

Expenses Exceed Income

• Majority receive subsidized housing, food stamps, and the Earned Income Tax Credit.

• For most, income does not cover expenses.

• Some workers feel they “get by”; others describe a constant struggle.

• Strategies include “paying on” bills, and scrimping or going without.

“Every day I stress…sitting there turning my wheels on how am I gonna pay this?”

-Sean, Installer/mover

“And so, if I know that I can’t spend money, I don’t spend money...So, I always keep money for daycare and for rent, and on the rest, if I have something we can go somewhere...”

-Svetlana, Caregiver

“Because my living expenses are way over my pay, I just don’t make enough to do all the things I need to do, so I have to borrow from Peter to pay Paul…You know? It’s just ongoing.”

-Latoya, Grocery store workerSource: The Seattle Minimum Wage Study: Report on Baseline Employer Survey and Worker Interviews, April 2016. Names are pseudonyms.

EMPLOYER SURVEY

WORKER INTERVIEWS

PRICE COLLECTION

PRICE COLLECTIONGrocery Prices

Prices Collected at:

Grocery OutletFred MeyerSafewayAlbertsonsQFCWhole Foods

• Four of the six matched grocery stores had higher prices in Seattle.

• This was a less than 1% price difference.

Source: Hill, Otten, van Inwegen, and Vigdor. “Early Evidence on the Impact of Seattle’s Minimum Wage Ordinance.” January 2016.

$3

17

$3

14

$3

15

$3

13

CITY OF SEATTLE OTHER KING COUNTY

TOTAL COST OF GROCERY BASKET

March 2015 (baseline) May 2015

PRICE COLLECTIONResidential Rent Per square foot, rents in

Seattle were 63% higher than in surrounding King County before the minimum wage increased.

Since then, rents have actually risen more rapidly outside Seattle than within.

Rent data is for 2 bedroom apartments listed on Craigslist.

2.3

1.4

2.3

1.4

2.4

1.6

CITY OF SEATTLE OTHER KING COUNTY

RESIDENTIAL RENT PRICE PER SQUARE FOOT

March - April 2015 April - December 2015 January - February 2016

Source: The Seattle Minimum Wage Study: Report on Baseline Employer Survey and Worker Interviews, April 2016. Data pulled from Craigslist.

PRICE COLLECTIONGasoline Prices

No measurable impact of the minimum wage ordinance on gas prices.Source: The Seattle Minimum Wage Study: Report on Baseline Employer Survey and Worker Interviews, April 2016.Data was pulled from Motor Trend.

$2.60

$2.70

$2.80

$2.90

$3.00

$3.10

$3.20

$3.30

6-Mar 6-Apr 6-May 6-Jun 6-Jul 6-Aug 6-Sep

AVERAGE GASOLINE PRICES MARCH TO OCTOBER 2015

City of Seattle Other King County

PRICE COLLECTIONRetail and Restaurant Prices

Source: Hill, Otten, van Inwegen, and Vigdor. “Early Evidence on the Impact of Seattle’s Minimum Wage Ordinance.” January 2016.

90%

92%

94%

96%

98%

100%

102%

104%

106%

108%

110%

March April June July August September October November January 2016

RETAIL AND RESTAURANT PRICES % CHANGE FROM BASELINE

Seattle Restaurants Seattle Retail Rest of King County Retail

Next StepsEmployer Survey:Summer 2016: A brief follow-up survey will assess changes made in the past year since the Minimum Wage Ordinance went into effect.2017: Another full survey will assess the changes in employment and business practice over the first two years of the new wage regime.

Worker Interviews:Spring 2016: We are currently collecting the second wave of interviews to capture change over time in work and family life.Spring 2017: If we can secure additional funding, we will conduct a third wave of interviews.

Price Analysis:2016: We are collecting prices on a monthly basis and have expanded price collection efforts to outside of Seattle.

Administrative Workforce Data:Spring 2016: We are analyzing Employment Security Department data on employment, hours, and earnings for a report to be released Summer 2016.

Nonprofit Study:Fall 2016: Report examining initial impact of ordinance on Seattle nonprofits through analysis of surveys and in-depth interviews.

Thank you!

Find out more at:http://evans.uw.edu/centers-and-projects/minimum-wage-study

Contact us at:[email protected]

Documents

SEATTLE MINIMUM WAGE STUDY - The Stranger · 4/18/2016 · Workers Expect “Everything Will Go Up” ... March - April 2015 April - December 2015 January - February 2016 Source: