March 11, 2016. In a new report from the University of California at Berkeley, noted economist Michael Reich and colleagues take a comprehensive look at the likely impact of a $15 minimum wage in New York State.

This report assesses the broad impact on businesses and the overall economy and employment levels from the proposed phased-in $15 minimum wage. The report makes a significant contribution to the minimum wage literature since it  looks broadly across the economy and factors in both the impacts on workers and business operating costs, and considers the interaction between these forces. The report concludes that the higher wage costs of the minimum wage will be offset by savings related to reduced turnover, productivity increases and modest price increases that are only a fraction of recent overall price increases. Net employment effects will be minimal and yet over one-third of the state’s workforce will benefit from an average 23% increase in their wages.