The Potential Economic Impact of Increasing the Minimum Wage in New Hampshire
In May 2007, New Hampshire passed HB 514, mandating an increase in the state minimum wage to $6.50 in September 2007 and to $7.25 in September 2008. This paper estimates the potential economic impact of this law on the state's aggregate employment and wages. According to the analysis, the minimum wage increase would raise the wages of 26,000 workers in the state and would have a negative impact on employment ranging from 300 to 1,500 jobs, which is between 1 percent and 6 percent of workers directly affected by the law. On net, the combined impact of both stages of the increase would raise aggregate wages by approximately $17.4 million. The analysis focuses on workers with hourly wages between $5.15 and $7.25 and does not examine the impact of the bill on tipped employees.
This Discussion Paper builds on similar research completed by the Center in 2006, The Potential Economic Impact of Increasing the Minimum Wage in Massachusetts.
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