Minimum-Wage Effects by Neighborhood: A Preliminary Analysis
In this brief, we examine the aggregate dollar amounts potentially flowing to low-wage workers in Massachusetts neighborhoods and communities as a result of mandated increases in the state minimum wage. We draw from census data to estimate income and develop various impact scenarios. Disagreements abound about the employment effect of increased minimum wages on the local workforce. Our analysis lays out several scenarios illustrating how communities may be affected, depending on employers’ responses and the concentration of low-wage workers in each community.