Guam Poverty Income Employment and Compensation Inequality

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For more information, please contact:

The Office of Vice Speaker Benjamin J.F. CruzI Mina’trentai Dos Na Liheslaturan GuahanT 477-2520/1 | F 477-2522http://www.senatorbjcruz.com

Raise The

Minimum wage

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INCOME EQUALITY AND GENDER

LOCAL IMPACTS OF THE LAST FEDERAL MINIMUM WAGE INCREASES

COST OF LIVING

POVERTY ON GUAM

IMPACT OF PROPOSED MINIMUM WAGE INCREASE

ECONOMICS OF MINIMUM WAGE

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SETTING THE RECORD STRAIGHT ABOUT THE MINIMUM WAGE

30

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For more information, please contact:

The Office of Vice Speaker Benjamin J.F. Cruz

I Mina’trentai Dos Na Liheslaturan Guahan

T 477-2520/1 | F 477-2522

http://www.senatorbjcruz.com

Setting the record straight about the minimum wage 42

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INCOME EQUALITY AND GENDER

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Workforce Population By Sex on Guam

Men; 34960;

57%

Women; 26880;

43%

Public Sector Workforce Population By Sex Guam

Men, 7400, 48%Women,

8170, 52%

Women Workforce Population By Sector Guam

Public Sector,

8,170, 30%

Private Sector, 18,710,

70%

Private Sector Workforce Population By Sex Guam

Men, 27560,

60%

Women, 18710,

40%

4Source Guam DOL Current Employment Statistics Historical Tables 1993-2013. December 2013

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Full Time, Year

Round62%

Part Time Year

Round38%

Women

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Income Distribution Women Income Distribution Men

Income Distribution Between Genders

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$1 to $9,999 or

loss15%

$10,000 to $14,999

12%

$15,000 to $24,999

25%

$25,000 to $34,999

16%

$35,000 to $49,999

14%

$50,000 to $64,999

8%

$65,000 or more10%

Row Labels$1 to

$9,999 or loss

$10,000 to

$14,999

$15,000 to

$24,999

$25,000 to

$34,999

$35,000 to

$49,999

$35,000 to

$49,999

$50,000 to

$64,999

$65,000 to

$74,999

$75,000 or more

Female 6383 4951 7730 4911 4184 4184 2195 638 1308

Worked full-time, year-round

939 2,553 5,495 4,044 3,561 3,561 1,865 540 1,104

Worked less than full-time, year-round

5,444 2,398 2,235 867 623 623 330 98 204

Male 6042 4865 10225 6792 5986 5986 3565 1350 3803

Worked full-time, year-round

1,190 2,723 7,512 5,719 5,360 5,360 3,190 1,201 3,373

Worked less than full-time, year-round

4,852 2,142 2,713 1,073 626 626 375 149 430

Grand Total 12,425 9,816 17,955 11,703 10,170 10,170 5,760 1,988 5,111Full Time

Year Round

71%

Part Time Year

Round29%

Men

Source: U.S. Census Bureau, 2010 Census Guam

Table 6-5. Work Status in 2009 and Sex by Income in 2009

NOTE: For information on confidentiality protection, nonsampling error, and definitions, see

www.census.gov/prod/cen2010/doc/dct2gu.pdf.

$1 to $9,999 or loss

22%

$10,000 to $14,999

16%

$15,000 to $24,999

23%

$25,000 to $34,999

15%

$35,000 to $49,999

13%

$50,000 to $64,999

6%

$65,000 or more

5%

Gender

Less then $25,000 per year

$35,000 per year or more

Men 51.61% 32.32%

Women 61.34% 23.67%

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Women Workforce Population By Industry

AGRICULTURE, 20, 0%

CONTRACTORS, 360, 2%

MANUFACTURING, 350, 2%

TRANSPORTATION & PUBLIC

UTILITIES, 1,840, 10%

WHOLESALE TRADE, 720,

4%RETAIL TRADE,

6,120, 33%FINANCE,

INSURANCE & REAL ESTATE,

1,770, 9%

SERVICES, 7,530, 40%

Private Sector: Industry Gender Composition

0% 20% 40% 60% 80% 100%Men Women

Women Workforce Population By Industry

AGRICULTURE, 140, 0% CONTRACTORS,

6,760, 24%

MANUFACTURING, 1,070,

4%

TRANSPORTATION & PUBLIC

UTILITIES, 2,970, 11%

WHOLESALE TRADE,

1,530, 6%

RETAIL TRADE,

5,410, 20%

FINANCE, INSURANCE

& REAL ESTATE, 760,

3%

SERVICES, 8,920, 32%

Industry by Median Earnings and Gender

IndustryMales Full

Timeyear-round

Women Full Time

...Agriculture, forestry, fishing and hunting, and mining $28,438 $21,250

...Construction $25,369 $27,125

...Manufacturing $27,132 $19,239

...Wholesale trade $24,009 $24,091

...Retail trade $22,969 $19,755

...Transportation and warehousing, and utilities $35,081 $32,123

...Information $36,314 $26,842

...Finance and insurance, and real estate and rental and leasing $31,188 $28,956

...Professional, scientific, and management, and administrative and waste management services $29,437 $28,173

...Educational services, and health care and social assistance $36,315 $33,219

...Arts, entertainment, and recreation, and accommodation and food services $18,996 $15,936

...Other services, except public administration $24,250 $21,181

...Public administration $45,997 $35,862

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Source Guam DOL Current Employment Statistics Historical Tables 1993-2013. December 2013

Source: U.S. Census Bureau, 2010 Census Guam Table 6-7. Industry by Median Earnings in 2009 and Sex

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MSchool Enrollment, Educational Attainment, and Sex by Earnings

As shown in the comparison below, the total men who attended some college but didn’t graduate and make 50k + annually (2,528) total more than women with a bachelors making 50k + annually (2,286) despite there being more women in the workforce with bachelors degrees.

Men who never graduated or never finished their bachelors degree making 50k + annually (4,266) total more than the total women on Guam making 50k + annually (3,573).

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Men Women

$50,000 to $64,999$65,000 or

more$50,000 to $64,999

$65,000 or more

Bachelor's degree or higher 1276 1010

Some college or associate's degree 1227 1301 438 316

High school graduate, GED, or alternative credential 861 632 298 177

Less than high school graduate 128 117 27 31

Men without Bachelor Degrees vs All Women Making 50k +

4266 3573

Total Population making more than 50k Per Year 7679 3573

Guam Income Earners with Bachelors Degrees 7522 8209

Source: U.S. Census Bureau, 2010 Census GuamTable 6-3. School Enrollment, Educational Attainment, and Sex by Earnings in 2009

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LOCAL IMPACTS OF THE LAST FEDERAL MINIMUM WAGE INCREASES

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Employment, Hourly Rate, and Minimum Wage

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$4.00

$9.00

$14.00

$19.00

$24.00

34,000

36,000

38,000

40,000

42,000

44,000

46,000

48,000M

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Mar

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Dec

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Employment Private Sector

Hourly Rate - Private Sector

7/2

4/20

07: $

5.8

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09: $

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Periods Following the Increased Minimum Wage

Before Minimum Wage Increases

Quarter Ending

Employed -Private Sector

Average Hourly Rate -Private Sector

Avg Weekly Hours-Private Sector

Sum of Min

Wage

Jun-04 42,340 $10.73 35.5 $5.15

Sep-04 42,630 $11.11 36 $5.15

Dec-04 42,480 $11.03 35.7 $5.15

Mar-05 42,790 $11.08 35.4 $5.15

Jun-05 42,960 $11.03 35.1 $5.15

Sep-05 43,120 $10.92 35.6 $5.15

Dec-05 43,230 $10.85 35.9 $5.15

Mar-06 43,580 $10.99 35.9 $5.15

Jun-06 42,980 $10.68 35.3 $5.15

Sep-06 43,210 $10.81 35.7 $5.15

Dec-06 44,160 $10.84 36 $5.15

Mar-07 44,450 $11.10 36 $5.15

Jun-07 43,850 $10.90 36.4 $5.15

Sep-07 44,650 $11.15 35.9 $5.85

Dec-07 45,320 $11.29 36.4 $5.85

Mar-08 46,680 $11.16 36.2 $5.85

Jun-08 45,580 $11.12 36.5 $5.85

Sep-08 45,990 $11.43 36 $6.55

Dec-08 45,730 $11.47 36.3 $6.55

Mar-09 45,900 $11.63 36.3 $6.55

Jun-09 44,710 $11.59 34.9 $6.55

Sep-09 44,860 $12.15 35.6 $7.25

Dec-09 45,670 $12.16 36.1 $7.25

Mar-10 46,320 $12.20 35.9 $7.25

Jun-10 46,440 $12.20 36.4 $7.25

Sep-10 46,430 $12.33 36.5 $7.25

Dec-10 46,790 $12.37 36.4 $7.25

Mar-11 45,920 $12.45 35.9 $7.25

Jun-11 44,490 $12.28 35.3 $7.25

Sep-11 44,630 $12.24 35.8 $7.25

Dec-11 44,760 $12.36 35.7 $7.25

Mar-12 45,090 $12.49 36.1 $7.25

Jun-12 44,800 $12.57 35.7 $7.25

Sep-12 45,450 $12.45 35.8 $7.25

Dec-12 46,100 $12.95 37 $7.25

Mar-13 46,090 $12.87 36.4 $7.25

Jun-13 45,570 $12.67 37.6 $7.25Source: Calculations from Guam DOL Current Employment Statistics Historical Tables 1993-2013

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Average Hourly Wage, Minimum Wage and Employment Volume in Guam's Private Sector

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4 years Before 1st of 3 Minimum Wage Increases were Implemented (Quarter Ending 9/2003-Quarter Ending 6/2007)

4yravg

43,160 $10.94 35.8 $20,344.57

Quarter

Ending


Average Hourly Rate -

Private Sector

Wkly HrsPaid –PrivateSector

Avg Annual Earnings –

Private Sector

Sum of

Min Wage

Sep-03 42,030 $10.40 36 $19,468.80 5.15

Dec-03 42,770 $10.92 36.1 $20,499.02 5.15

Mar-04 42,850 $11.15 35.7 $20,698.86 5.15

Jun-04 42,340 $10.73 35.5 $19,807.58 5.15

Sep-04 42,630 $11.11 36 $20,797.92 5.15

Dec-04 42,480 $11.03 35.7 $20,476.09 5.15

Mar-05 42,790 $11.08 35.4 $20,396.06 5.15

Jun-05 42,960 $11.03 35.1 $20,131.96 5.15

Sep-05 43,120 $10.92 35.6 $20,215.10 5.15

Dec-05 43,230 $10.85 35.9 $20,254.78 5.15

Mar-06 43,580 $10.99 35.9 $20,516.13 5.15

Jun-06 42,980 $10.68 35.3 $19,604.21 5.15

Sep-06 43,210 $10.81 35.7 $20,067.68 5.15

Dec-06 44,160 $10.84 36 $20,292.48 5.15

Mar-07 44,450 $11.10 36 $20,779.20 5.15

Jun-07 43,850 $10.90 36.4 $20,631.52 5.15

4 years After Last Minimum Wage Increases was Implemented(Quarter Ending 9/2009-Quarter Ending 6/2014)

4yr avg 45,637 $12.44 36.2 $23,402.05

Quarter Ending


Average Hourly Rate

- Private Sector

Wkly HrsPaid –PrivateSector

Avg Annual Earnings –

Private Sector

Sum of Min

Wage

Sep-09 44,860 $12.15 35.6 $22,492.08 7.25

Dec-09 45,670 $12.16 36.1 $22,826.75 7.25

Mar-10 46,320 $12.20 35.9 $22,774.96 7.25

Jun-10 46,440 $12.20 36.4 $23,092.16 7.25

Sep-10 46,430 $12.33 36.5 $23,402.34 7.25

Dec-10 46,790 $12.37 36.4 $23,413.94 7.25

Mar-11 45,920 $12.45 35.9 $23,241.66 7.25

Jun-11 44,490 $12.28 35.3 $22,541.17 7.25

Sep-11 44,630 $12.24 35.8 $22,785.98 7.25

Dec-11 44,760 $12.36 35.7 $22,945.10 7.25

Mar-12 45,090 $12.49 36.1 $23,446.23 7.25

Jun-12 44,800 $12.57 35.7 $23,334.95 7.25

Sep-12 45,450 $12.45 35.8 $23,176.92 7.25

Dec-12 46,100 $12.95 37 $24,915.80 7.25

Mar-13 46,090 $12.87 36.4 $24,360.34 7.25

Jun-13 45,570 $12.67 37.6 $24,772.38 7.25

Compared to the 4 years before July 2007 when the 3 minimum wage increases began.• 2,477 More Jobs• $1.50 More Per Hour• 1.2 Hours Worked More Per WeekThe Minimum Wage Increase did not negatively affect Jobs, Hours, or Pay after the last increase.

GUAM TO INCREASE MINIMUM WAGE BY 60 CENTSBy Steve LimtiacoPacific Daily News, July 18, 2006“Local businessmen during legislative session late last month told lawmakers that increasing the minimum wage would have a domino effect on other wage earners in order to maintain a fair pay separation between veteran employees and new hires.”

Source: Calculations from Guam DOL Current Employment Statistics Historical Tables 1993-2013

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5September 2005 - June 2009 September 2009 - June 2013

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Compared to the 4 years before July 2009 when the minimum wage was last increased.• 1,017 More Jobs• $1.30 More Per Hour• .18 Hours Worked More Per WeekThe Minimum Wage Increase did not negatively affect Jobs, Hours, or Pay after the last increase.

Source: Calculations from Guam DOL Current Employment Statistics Historical Tables 1993-2013

Quarter Ending

EmployedAvg Hourly Rate

Avg Weekly Hours Paid

Quarter Ending

EmployedAvg Hourly Rate

Avg Weekly Hours Paid

Sep-05 43,120 $10.92 35.60 Sep-09 44,860 $12.15 35.60

Dec-05 43,230 $10.85 35.90 Dec-09 45,670 $12.16 36.10

Mar-06 43,580 $10.99 35.90 Mar-10 46,320 $12.20 35.90

Jun-06 42,980 $10.68 35.30 Jun-10 46,440 $12.20 36.40

Sep-06 43,210 $10.81 35.70 Sep-10 46,430 $12.33 36.50

Dec-06 44,160 $10.84 36.00 Dec-10 46,790 $12.37 36.40

Mar-07 44,450 $11.10 36.00 Mar-11 45,920 $12.45 35.90

Jun-07 43,850 $10.90 36.40 Jun-11 44,490 $12.28 35.30

Sep-07 44,650 $11.15 35.90 Sep-11 44,630 $12.24 35.80

Dec-07 45,320 $11.29 36.40 Dec-11 44,760 $12.36 35.70

Mar-08 46,680 $11.16 36.20 Mar-12 45,090 $12.49 36.10

Jun-08 45,580 $11.12 36.50 Jun-12 44,800 $12.57 35.70

Sep-08 45,990 $11.43 36.00 Sep-12 45,450 $12.45 35.80

Dec-08 45,730 $11.47 36.30 Dec-12 46,100 $12.95 37.00

Mar-09 45,900 $11.63 36.30 Mar-13 46,090 $12.87 36.40

Jun-09 44,710 $11.59 34.90 Jun-13 45,570 $12.67 37.60

4 Year Average

44,571 $11.12 35.964 Year

Average45,588 $12.42 36.14

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PRIVATE SECTOREmployment September 2005 -

June 2009Employment September 2009-June

2013 (4 years)

AGRICULTURE 313 229

CONSTRUCTION 5,456 6,508

General Building Contractors 4,128 5,018

Heavy Construction, ex. Building 527 464

Special Trade Contractors 801 1,026

MANUFACTURING 1,654 1,706

Food and kindred products 465 474

Printing and publishing 338 318

All other manufacturing 851 914

TRANSPORTATION & PUBLIC UTILITIES 4,858 4,524

WHOLESALE TRADE 2,029 2,147

RETAIL TRADE 11,783 11,500

FINANCE, INSURANCE & REAL ESTATE 2,493 2,579

SERVICES 15,986 16,440

Hotels and other lodging places 5,339 5,331

All other services 10,646 11,109

TOTAL PRIVATE SECTOR 44,571 45,632

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PRIVATE SECTORAverage Hrly Earnings

September 2005 - June 2009Average Hrly Earnings September 2009-

June 2013 (4 years)

AGRICULTURE $8.26 $9.24

CONSTRUCTION $13.08 $14.13

General Building Contractors $12.66 $13.74

Heavy Construction, ex. Building $14.87 $16.86

Special Trade Contractors $13.81 $12.43

MANUFACTURING $13.62 $14.37

Food and kindred products $9.48 $9.94

Printing and publishing $11.02 $12.16

All other manufacturing $15.33 $15.90

TRANSPORTATION & PUBLIC UTILITIES $14.40 $16.63

WHOLESALE TRADE $9.65 $10.66

RETAIL TRADE $10.04 $10.60

FINANCE, INSURANCE & REAL ESTATE $11.94 $13.05

SERVICES $9.51 $11.19

Hotels and other lodging places $7.38 $8.58

All other services $11.66 $14.05

TOTAL PRIVATE SECTOR $11.12 $12.42

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PRIVATE SECTORAverage Hours paid per Week September 2005 - June 2009

Average Hours paid per Week September 2009-June 2013 (4 years)

AGRICULTURE 39 36

CONSTRUCTION 41 40

General Building Contractors 40 39

Heavy Construction, ex. Building 47 48

Special Trade Contractors 40 36

MANUFACTURING 39 40

Food and kindred products 36 37

Printing and publishing 34 35

All other manufacturing 41 41

TRANSPORTATION & PUBLIC UTILITIES 39 39

WHOLESALE TRADE 38 38

RETAIL TRADE 32 31

FINANCE, INSURANCE & REAL ESTATE 38 38

SERVICES 35 37

Hotels and other lodging places 36 37

All other services 35 36

TOTAL PRIVATE SECTOR 35.96 36.06

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AvgHourly Rate

AvgHourly Weekly

Hours Paid

Male WomenTotal

Employment

Mar-04 $6.88 34.5 2480 2460 5080

Jun-04 $6.84 34.4 2460 2520 4960

Sep-04 $6.96 36.6 2460 2490 4950

Dec-04 $6.89 35.6 2470 2560 5030

Mar-05 $6.88 34.6 2430 2640 5080

Jun-05 $6.83 34.9 2500 2610 5110

Sep-05 $6.79 34.7 2580 2700 5280

Dec-05 $6.60 36.7 2670 2710 5380

Mar-06 $7.01 35.8 2790 2770 5570

Jun-06 $6.96 34 2750 2740 5490

Sep-06 $6.87 35.2 2640 2660 5300

Dec-06 $6.89 36.8 2700 2730 5450

Mar-07 $6.78 36.6 2730 2710 5320

Jun-07 $7.27 35.9 2730 2770 5380

Sep-07 $7.54 35 2660 2760 5420

Dec-07 $7.89 36.9 2790 2740 5530

Mar-08 $7.53 37.1 2830 2680 5410

Jun-08 $7.64 36.4 2740 2650 5260

Sep-08 $7.90 36 2710 2630 5340

Dec-08 $8.24 35.8 2570 2690 5260

Mar-09 $7.98 36.1 2500 2640 5150

Jun-09 $8.15 31.7 2400 2480 4890

Sep-09 $8.70 35 2410 2430 4840

Dec-09 $8.51 36.8 2460 2500 4960

Mar-10 $8.33 37.2 2510 2520 5170

Jun-10 $8.36 37.3 2550 2490 5210

Sep-10 $8.55 38.3 2710 2620 5330

Dec-10 $8.52 38.6 2750 2690 5440

Mar-11 $8.29 37.6 2800 2680 5410

Jun-11 $8.28 35.8 2670 2610 5070

Sep-11 $8.59 36.6 2720 2670 5120

Dec-11 $8.97 37.6 2800 2750 5280

Mar-12 $8.64 37.9 2700 2610 5370

Jun-12 $8.66 36.2 2650 2620 5410

Sep-12 $8.85 37.4 2820 2760 5570

Dec-12 $8.80 40.4 2880 2790 5720

Mar-13 $8.62 37.8 2980 2810 5790

Jun-13 $8.59 34.7 2850 2810 5600

Sep-13 $8.63 37.3 2810 2740 5540

Dec-13 $8.70 40.1 2810 2790 5540

With Room Rates, Visitor Arrivals, and Occupancy Rate Increasing Significantly, Employees working in the Hotel and Lodging Industry are averaging the same hourly rate in the quarter ending December 2013 as they were in quarter ending September 2009, the last time the minimum wage was increased.

Increased prices in the hotel industry and increased customer volume has not translated into increased compensation of the employees in the hotel industry.

Most Hotels on Guam have qualifying certificates and are exempt 75% of their taxes, regardless of their profit margins.

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COST OF LIVING

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MCost of Living Vs Average Private Sector Wages and the Minimum Wage

17

Average Hourly Rate -Private Sector, 2014-Q1,

$12.77

Minimum Wage Per Hour, 2014-Q1, $7.25

CPI FOOD, 132.1

CPI HOUSING, 124.3

CPI MEDICAL CARE, 114.7

80

90

100

110

120

130

140

$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

$30.00

$35.00

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-Q4

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QUARTER AND YEAR

Average Wages in the Private Sector, Minimum Wage, And The Cost of Living on Guam

Average Hourly Rate - Private Sector

Minimum Wage Per Hour

CPI FOOD

CPI HOUSING

CPI MEDICAL CARE

Source Guam DOL Current Employment Statistics Historical Tables 1993-2013. December 2013Guam Consumer Price Index 1st Quarter 2007 through 1st Quarter 2014 Vol. XL No 1

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POVERTY ON GUAM

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Living Wage vs Minimum Wage vs Poverty Wage Comparison against state with lowest cost of living (South Dakota) and Hawaii

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Families in Poverty on Guam Sections of Slides

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Below 50 percent of

poverty level,

17,195, 11%

Below 125 percent of poverty level, 45,785, 29%

Below 185 percent of

poverty level,

69,777, 45%

Above 185 percent of

poverty level, 23,752, 15%

Population of Guam and Poverty

Families in Poverty with female

householder, no husband present ,

2,874, 44%

All other familes in Poverty,

3,640, 56%

Source: U.S. Census Bureau, 2010 Census Guam Table 1-17. Poverty Status and Workers in Family in 2009 by Ethnic Origin or Race: 2010

Source: U.S. Census Bureau, 2010 Census Guam Table 1-17. Poverty Status and Workers in Family in 2009 by Ethnic Origin or Race: 2010

Living Wage Calculation for Hawaii

Hourly Wages 1 Adult1 Adult, 1 Child

1 Adult, 2 Children

1 Adult, 3 Children

2 Adults2 Adults,

1 Child

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2 Adults, 3 Childre

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Living Wage $12.51 $25.09 $31.42 $42.37 $18.88 $22.76 $24.10 $30.61

Poverty Wage $5.99 $8.06 $10.13 $12.90 $8.06 $10.13 $12.90 $14.26

Minimum Wage onGuam

$7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25

Living Wage Calculation for South Dakota

Hourly Wages 1 Adult1 Adult, 1 Child

1 Adult, 2 Children

1 Adult, 3 Children

2 Adults2 Adults,

1 Child

2 Adults, 2 Childre

n

2 Adults, 3 Childre

n

Living Wage $7.44 $16.23 $20.14 $25.10 $12.46 $15.41 $16.75 $19.54

Poverty Wage $5.21 $7.00 $8.80 $10.60 $7.00 $8.80 $10.60 $12.40

Minimum Wage on Guam $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25 $7.25

Source: Mass. institutes of technology http://povertyinamerica.mit.edu/

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EGuam Minimum Wage Annual Salary Vs Poverty Guidelines Set For Hawaii (Individual and for families by size)

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Guam Minimum Wage Annual Salary Vs Poverty Guidelines Set For 48 Contiguous States (Individual and for families by size)

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$0.00

$5,000.00

$10,000.00

$15,000.00

$20,000.00

$25,000.00

$30,000.00

$35,000.00

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Sum of Annual Income on Minimum Wage

HI Poverty Line Individual

HI Poverty Line Family of 2




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Sum of Annual Income on Minimum Wage 100% of Poverty Line for 1 100% of Poverty Line for 2 100% of Poverty Line for 3 100% of Poverty Line for 4

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Table 1-17. Poverty Status and Workers in Family in 2009 by Ethnic Origin or Race: 2010

Characteristic

Total

One Ethnic Origin or Race

Two or More

Ethnic Origins or

RacesTotal

Native Hawaiian and Other Pacific Islander Asian

White

Other Ethnic

Origin or Race

Chamorro [1] Chuukese

Other Native

Hawaiian and Other

Pacific Islander Filipino Korean Other Asian

...BELOW POVERTY LEVEL IN 2009

.........Number below poverty level

...All families [2,3] 6,514 6,097 2,679 1,121 556 1,194 159 148 173 67 417

......With related children under 18 years 5,491 5,121 2,298 1,051 508 886 101 95 128 54 370

.........With related children under 5 years 2,986 2,775 1,261 667 297 385 25 32 73 35 211

...Families with female householder, no husband present [2,3] 2,874 2,680 1,372 475 209 423 53 63 65 20 194

......With related children under 18 years 2,589 2,408 1,234 456 202 349 43 47 58 19 181

.........With related children under 5 years 1,405 1,305 697 275 118 153 9 11 28 14 100

...All individuals 35,848 32,491 14,018 6,918 3,153 5,894 690 737 803 278 3,357

......Under 18 years 16,581 14,597 6,908 3,542 1,477 2,015 172 157 244 82 1,984

.........Related children under 18 years 16,428 14,458 6,859 3,512 1,462 1,988 169 150 239 79 1,970

......18 to 64 years 17,822 16,486 6,610 3,312 1,622 3,297 430 509 517 189 1,336

......18 years and over 19,267 17,894 7,110 3,376 1,676 3,879 518 580 559 196 1,373

.........65 years and over 1,445 1,408 500 64 54 582 88 71 42 7 37

......Unrelated individuals 5,571 5,143 2,017 549 433 1,298 212 281 268 85 428

.........Percent below poverty level

...All families [2,3] 19.0 19.0 20.6 63.8 36.8 12.7 17.6 10.5 5.3 8.2 20.0

......With related children under 18 years 24.8 24.7 26.2 66.9 42.1 15.9 21.6 13.3 6.9 9.7 25.1

.........With related children under 5 years 30.2 30.2 31.4 70.7 46.6 18.7 22.3 13.3 8.2 12.3 30.5

...Families with female householder, no husband present [2,3] 37.6 37.5 36.7 77.9 52.8 24.9 39.3 25.0 27.8 23.8 39.0

......With related children under 18 years 46.2 46.1 44.1 80.4 61.6 33.1 48.9 32.2 33.9 27.9 47.3

.........With related children under 5 years 54.1 54.2 52.3 81.8 69.8 36.4 56.3 28.2 44.4 41.2 53.5

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IMPACT OF A PROPOSED MINIMUM WAGE INCREASE

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Minimum Wage Impact Estimate Summary

Occupational Group 1 - $8.20 2 - $9.15 3 - $10.10

Food Preparation and Serving Related Occupations 1,453 4,130 5,161

Office and Administrative Support Occupations 845 2,495 3,022

Sales and Related Occupations 642 1,774 2,363

Building and Grounds Cleaning and Maintenance Occupations 728 1,854 2,054

Transportation and Material Moving Occupations 362 930 1,158

Protective Service Occupations 303 885 1,076

Personal Care and Service Occupations 212 535 730

Installation, Maintenance, and Repair Occupations 197 460 530

Production Occupations 106 329 423

Construction and Extraction Occupations 88 205 415

Arts, Design, Entertainment, Sports, and Media Occupations 43 101 123

Healthcare Support Occupations 23 73 120

Management Occupations 0 94 94

Healthcare Practitioners and Technical Occupations 11 44 72

Business and Financial Operations Occupations 0 23 56

Community and Social Service Occupations 10 20 47

Education, Training, and Library Occupations 7 26 32

Legal Occupations 7 18 18

Computer and Mathematical Occupations 0 19 19

Life, Physical, and Social Science Occupations 0 0 5

Grand Total 5,035 14,011 17,514

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The proposed federal minimum wage increase is proposed to begin 2015, and raise 95 cents per year for three years leaving the minimum wage at $10.10 per hour in 2017

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RDistribution of Estimated Employees Impacted within Occupational Groups from $8.20 Minimum Wage Effective 2015

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Total, Food Preparation and Serving Related

Occupations, 1,453, 29%

Total, Office and Administrative Support Occupations, 845, 17%Total, Building

and Grounds Cleaning and Maintenance Occupations,

728, 14%

Total, Sales and Related Occupations,

642, 13%

Total, Transportation and Material Moving Occupations, 362, 7%

Total, Protective Service Occupations,

303, 6%

Total, Personal Care and Service

Occupations, 212, 4%

Total, Installation, Maintenance, and

Repair Occupations, 197, 4%

Total, Production Occupations, 106,

2%

Total, Construction and Extraction

Occupations, 88, 2%

Total, Arts, Design, Entertainment, Sports,

and Media Occupations, 43, 1% Total, Healthcare

Support Occupations, 23, 0%

Total, Healthcare Practitioners and Technical

Occupations, 11, 0%Total, Community and

Social Service Occupations, 10, 0%

Total, Education, Training, and Library Occupations, 7, 0%

Total, Legal Occupations, 7, 0%

(5,035 estimated to make less than proposed minimum wage)

Minimum Wage Impact Estimates calculated from May 2012 OES EstimateMay 2012 OES Estimates Source for Data: http://www.bls.gov/oes/current/oes_gu.htmData: Occupational Employment Statistics (OES) SurveyData Owner: Bureau of Labor Statistics, Department of Labor

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Distribution of Estimated Employees Impacted within Occupational Groups from $9.15 Minimum Wage Effective 2016

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Total, Food Preparation and Serving Related Occupations, 4,130,

29.47%

Total, Office and Administrative Support

Occupations, 2,495, 17.81%

Total, Building and Grounds Cleaning and Maintenance


Total, Sales and Related Occupations, 1,774,

12.66%

Total, Transportation and Material Moving

Occupations, 930, 6.64%

Total, Protective Service Occupations, 885, 6.32%

Total, Personal Care and Service Occupations, 535,

3.82%

Total, Installation, Maintenance, and

Repair Occupations, 460, 3.28%

Total, Production Occupations, 329, 2.34%

Total, Construction and Extraction Occupations,

205, 1.46%

Total, Arts, Design, Entertainment, Sports,

and Media Occupations, 101, 0.72%

Total, Management Occupations, 94, 0.67%

Total, Healthcare Support Occupations, 73, 0.52%

Total, Healthcare Practitioners and

Technical Occupations, 44, 0.31%

Total, Education, Training, and Library Occupations,

26, 0.18%

Total, Business and Financial Operations


Total, Community and Social Service


Total, Computer and Mathematical

Occupations, 19, 0.14%Total, Legal Occupations,

18, 0.12%


Minimum Wage Impact Estimates calculated from May 2012 OES EstimateMay 2012 OES Estimates Source for Data: http://www.bls.gov/oes/current/oes_gu.htmData: Occupational Employment Statistics (OES) SurveyData Owner: Bureau of Labor Statistics, Department of Labor

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RDistribution of Estimated Employees Impacted within Occupational Groups from $8.20 Minimum Wage Effective 2015

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Food Preparation and Serving Related


Office and Administrative Support Occupations,

3,022, 17.25%

Sales and Related Occupations, 2,363,

13.49%

Building and Grounds Cleaning and Maintenance


Transportation and Material Moving


Protective Service Occupations, 1,076, 6.14%

Personal Care and Service Occupations, 730, 4.17%

Installation, Maintenance, and Repair Occupations,

530, 3.02%

Production Occupations, 423,

2.42%

Construction and Extraction Occupations,

415, 2.37%

Arts, Design, Entertainment, Sports, and Media Occupations, 123,

0.70%

Healthcare Support Occupations, 120, 0.69%

Management Occupations, 94, 0.54%

Healthcare Practitioners and Technical Occupations,

72, 0.41%

Business and Financial Operations Occupations,

56, 0.32%

Community and Social Service Occupations, 47,

0.27%

Education, Training, and Library Occupations, 32,

0.18%

Computer and Mathematical Occupations,

19, 0.11%Legal Occupations, 18,

0.10% Life, Physical, and Social Science Occupations, 5,

0.03%


Minimum Wage Impact Estimates calculated from May 2012 OES EstimateMay 2012 OES Estimates Source for Data: http://www.bls.gov/oes/current/oes_gu.htmData: Occupational Employment Statistics (OES) Survey

Data Owner: Bureau of Labor Statistics, Department of Labor

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Impacted by $0.95 Increase 2015

Top 20 Occupations 8.20

Cashiers 428

Waiters and Waitresses 403

Janitors and Cleaners, Except Maids and Housekeeping Cleaners 323

Stock Clerks and Order Fillers 295

Security Guards 280

Food Preparation Workers 265

Maids and Housekeeping Cleaners 250

Combined Food Preparation and Serving Workers, Including Fast

Food 245

Cooks, Restaurant 203

Maintenance and Repair Workers, General 139

Retail Salespersons 136

Landscaping and Groundskeeping Workers 135

Customer Service Representatives 134

Office Clerks, General 108

Light Truck or Delivery Services Drivers 98

Dishwashers 98

Bookkeeping, Accounting, and Auditing Clerks 81

Driver/Sales Workers 80

Construction Laborers 71

Cooks, Fast Food 60

Hotel, Motel, and Resort Desk Clerks 60

Grand Total 3,889

Impacted by $0.95 Increase 2017Impacted by $0.95 Increase 2016 2016

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Waiters and Waitresses 1,208

Cashiers 855

Security Guards 840



Combined Food Preparation and Serving Workers, Including Fast Food 735







Landscaping and GroundskeepingWorkers 405


Dishwashers 293

Light Truck or Delivery Services Drivers 195

Cooks, Fast Food 180


Childcare Workers 165

Cleaners of Vehicles and Equipment 165

Grand Total 10,640


Waiters and Waitresses 1,449

Cashiers 1,283

Security Guards 1,008



Combined Food Preparation and Serving Workers, Including Fast Food 882







Landscaping and GroundskeepingWorkers 405


Dishwashers 351


Cooks, Fast Food 216

Bookkeeping, Accounting, and Auditing Clerks 203

Childcare Workers 198

Cleaners of Vehicles and Equipment 198

Grand Total 12,481

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Many to most minimum waged workers do not work full time per each employer they work for.

Employers do not have to do the following for non-full time workers:

• Provide Medical, Dental, Vision Insurance

• Paid Leave and Paid Sick Leave

For employers who do employ minimum wage workers that work full time for them, it would be a $1,976 increase in salary/wage cost per employee per year increased max. That is $164.66 more money an employer will have to pay per employee per month max, and $82.33 per paycheck.

If you do not employ minimum wage workers that work full time, and employ workers that do not make minimum wage but make below either the proposed minimum wage increases, the costs will not exceed the amounts above per year.

Is 1,976 per year (the maximum increase from proposed raise) really impact your profit margins so big it will change the way you have to do business, prevent you from profiting, and make you feel that a $1,976 max increase per employee per year is going to ruin the economy.

Minimum Wage increase in perspective of average costs for average employees working full time

29

Employees 1 day 1 week 1 month 1 year

1 Employee $7.60 $38.00 $152.00 $1,976.00

2 Employees $15.20 $76.00 $304.00 $3,952.00

3 Employees $22.80 $114.00 $456.00 $5,928.00

4 Employees $30.40 $152.00 $608.00 $7,904.00

5 Employees $38.00 $190.00 $760.00 $9,880.00

6 Employees $45.60 $228.00 $912.00 $11,856.00

7 Employees $53.20 $266.00 $1,064.00 $13,832.00

8 Employees $60.80 $304.00 $1,216.00 $15,808.00

9 Employees $68.40 $342.00 $1,368.00 $17,784.00

10 Employees $76.00 $380.00 $1,520.00 $19,760.00

Employees 1 day 1 week 1 month 1 year

1 Employee $6.65 $33.25 $133.00 $1,729.00

2 Employees $13.30 $66.50 $266.00 $3,458.00

3 Employees $19.95 $99.75 $399.00 $5,187.00

4 Employees $26.60 $133.00 $532.00 $6,916.00

5 Employees $33.25 $166.25 $665.00 $8,645.00

6 Employees $39.90 $199.50 $798.00 $10,374.00

7 Employees $46.55 $232.75 $931.00 $12,103.00

8 Employees $53.20 $266.00 $1,064.00 $13,832.00

9 Employees $59.85 $299.25 $1,197.00 $15,561.00

10 Employees $66.50 $332.50 $1,330.00 $17,290.00

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ECONOMICS OF MINIMUM WAGE

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Minimum wage from 1938 to 2012 in nominal dollars and inflation-adjusted 2012 dollars

31

View the minimum wage from 1938 to 2012 dataSource: U.S. Department of Labor, Wage & Hour Division, www.dol.gov/whd/minwage/chart.htm1Inflation adjusted using CPI-W, annual averages 1938 to 2012, bls.gov/cpi

http://www.dol.gov/minwage/chart1.htm

http://www.dol.gov/whd/minwage/chart.htm

http://bls.gov/cpi/

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Real GDP per capita compared to real minimum wage, 1930 to 2012

32

View the real GDP per capita compared to real minimum wage, 1930 to 2012 dataSource: Bureau of Economic Analysis, www.bea.govMid-year population estimates from U.S. Census Bureau, www.census.gov1In 2012 dollars, Chained GDP Deflator2In 2012 dollars CPI-W, annual averages 1928 to 2012, bls.gov/cpi


http://www.dol.gov/cgi-bin/leave-dol.asp?exiturl=http://www.bea.gov/&exitTitle=www.bea.gov&fedpage=yes

http://www.dol.gov/cgi-bin/leave-dol.asp?exiturl=http://www.census.gov/&exitTitle=www.census.gov&fedpage=yes

http://bls.gov/cpi/

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View the Real GDP per capita dataSource: Bureau of Economic Analysis, www.bea.govMid-year population estimates from U.S. Census Bureau, www.census.gov




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View the Annual pct in real GDP per capita, compared to pct in real minimum wage dataSource: Bureau of Economic Analysis, www.bea.govMid-year population estimates from U.S. Census Bureau, www.census.govMinimum Wage from U.S. Department of Labor, Wage & Hour Division, www.dol.gov/whd/minwage/chart.htm1In 2012 dollars, Chained GDP Deflator2In 2012 Dollars CPI-W, annual averages 1928 to 2012, bls.gov/cpi




http://www.dol.gov/whd/minwage/chart.htm

http://bls.gov/cpi/

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A $10.10 Minimum Wage Would Raise a Family of Four With One Full-Time Worker Above the Poverty Line Counting Their Tax Credits

Earnings of Full-Time Worker at Minimum WageRelative to Poverty Line for Family of Four

Dollars

30,000

25,000

20,000

15,000

10,000

5,000

0

$7.25 Minimum Wage $10.10 Minimum WageNote: Based on projected poverty threshold for a family of four in 2016. Does not include SNAP assistance.Source: CEA calculations.

5

Raising the minimum wage to $10.10 would raise incomes for an estimated 12 million people now in poverty, lifting 2 million of them out of poverty.

5% Above Poverty Line

17% Below Poverty Line $6,050

$6,200 Tax Credits

Wages$20,200

$14,500

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The Minimum Wage Affects Inequality – With Inequality BetweenLow/Middle-Income Historically Tracking the Minimum Wage

Women's 50-10 Wage Gap vs. Real Minimum Wage

Index, 1973=100 Index, 1973=100 (inverted)

140 65

130 75Women's 50-10

Wage Gap(left axis)

12085

Real Minimum Wage(right axis, inverted)

11095

100

10590

11580

12570

60 135

1973 1978 1983 1988 1993 1998 2003 2008 2013Note: The 50-10 wage gap is the ratio of income earned at the 50th percentile to income earned at the 10th percentile.Source: CEA calculations based on updated data from Lemieux (2007).

6

Studies have shown that the minimum wage plays an important role in reducing inequality.

Important in the bottom of the wage distribution and for women (DiNardo, Fortin, and Lemieux, 1996). Declining real value of the minimum wage explained roughly one-third to one-half of the increase in the 50-10 wage gap for

women during the 1980s (Autor, Manning, and Smith, 2010).

2012

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As of January 2014, 21 States + DC Have Higher Minimum Wagesthan the Federal and 11 States Index to Inflation

7

During the 2013 legislative session, CA, CT, NY and RI passed legislation to provide for minimum wage increases; NJ raised the minimum wage and indexed it to inflation by ballot initiative. These changes take effect at different points in 2014 and 2015.

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The US Remains Slightly Lower Than Other Advanced

Even With a $10.10 Minimum Wage Countries

Real Minimum Wage in 2016 U.S. Dollars*Australia

Luxembourg

France

Belgium

Ireland

New Zealand

Netherlands

Canada

United KingdomJapan

Austria

United States

Israel

SloveniaSpain

Greece

Korea

Portugal

Turkey

Poland

Czech Republic

Slovak Republic

Hungary

ChileEstonia

Mexico

0 2 4 6 8 10 12 14 16 182016$ Per Hour

*Underlying data in 2012 US$, converted to 2016 US$ using CBO projections for consumer price inflation. Source: OECD; CEA calculations.

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Raising the Minimum Wage Would Help Businesses by IncreasingProductivity and Reducing Turnover and Absenteeism

Some of the key findings from decades of research on the minimum wage:

1. Increases worker productivity. A higher minimum wage would increase the productivity ofworkers:

• Greater motivation and perception of fairness. Workers are motivated directly by feeling theyare receiving a fair wage (e.g., Bewley 1999; Mas 2006). Akerlof (1986) argues that higherwages increase employee morale, which raises productivity. Also, workers monitor each othermore when they feel that they are receiving good, fair wages, creating a culture of hard workthat allows employers to spend less on supervising them (Akerlof 2012).Improved focus on the job. Higher wages help workers maintain better physical and mental•

health and could help relieve “decision fatigue” (Mani, et al 2013; Shah et al, 2012), allowingthem to be more productive at work.

2. Reduces turnover and saves on recruiting/training costs. Higher wages lead to lower turnover,reducing the amount employers must spend recruiting and training new employees (Dube, Reich,and Naidu 2005; Dube, Lester, and Reich 2013).

3. Reduces absenteeism. When workers are paid higher wages, they are absent from work less often,increasing both their own productivity and that of their coworkers (Allen 1983; Mefford 1986;Pfeifer 2010; Zhang 2013).

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Based on 64 Studies of Minimum Wage Increases, Researchers Find “No Discernable Effect on Employment”

Study FindsIncreasedEmployment

Study FindsReduced Employment

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Studies have shown that minimum wage increases lead to “little or no employmentresponse”: Comparing 288 pairs of contiguous U.S. counties with minimum wage differentials from 1990 to 2006 finds “no adverse

employment effects” (Dube, Lester, and Reich, 2010). A meta-analysis of the minimum wage research published since 2000 concludes, “The weight of that evidence pointsto little or no

employment response to modest increases in the minimum wage” (Schmitt, 2013). Researchers have noted that even this distribution of studies is biased because studies (spuriously) finding largepositive effects on

employment are likely not to be published while studies (spuriously) finding large negative effects on employment arepublished. 40

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APPENDIX: Beneficiaries of Increasing the Minimum Wage

Characteristics of Minimum Wage Workers and Workers Affected by Increasing the Federal Minimum Wage

MinimumWage

Workers Affectedby Increase to

MinimumWage

Workers Affectedby Increase to

Workers $10.10 All Workers Workers $10.10 All Workers

% of All Workers 4.5% 21.4% 100.0% Family Structure

Married w/ kidsUnmarried w/ kids

Married w/o kids Unmarried w/o kids

Teenagers

12.7%9.0%

12.9%41.2%24.2%

16.3%10.0%17.4%44.2%12.1%

26.6%7.5%

27.4%35.1%3.4%

SexMale

Female42.1%57.9%

45.0%55.0%

51.5%48.5%

Family Income

Under $35,000$35k-$75k

$75k+

47.7%30.2%22.2%

45.5%32.1%22.4%

24.8%35.0%40.2%

AgeUnder 20 yrs old

Age 20-29Age 30-39Age 40-54

Age 55+

24.2%35.4%13.9%16.0%10.4%

12.1%37.0%16.7%20.6%13.6%

3.4%21.9%21.7%33.0%19.9%

Race/Ethnicity

White

Black

Hispanic

Asian

Other

52.3%13.0%27.6%4.7%2.4%

53.3%14.5%25.2%4.8%2.3%

65.0%11.2%16.2%5.8%1.8%

Source: Current Population Survey, outgoing rotation groups for December 2012 through November 2013. Minimum WageWorkers earn a wage within 25 cents above or below the federal minimum of $7.25. Affected workers earn a wagebetween 25 cents below the minimum and $10.10, deflated from 2016 dollars to 2013 dollars using CBO projections.Percentages may not sum to 100% within category due to rounding.

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Guam Poverty Income Employment and Compensation Inequality

Travel

total women

time yearround women

sex guam men

women incomedistribution

total men

sector guam public sector

men source

census guam table