Ohio still needs a raise
Posted July 11, 2024 in Press Releases
With minimum wage off the November ballot, Policy Matters economist discusses pathways to $15
Last Wednesday was the deadline for turning in petition signatures to put a $15 minimum wage on the Ohio ballot this November. Signature gatherers determined they had not yet reached the required number in all Ohio counties and did not submit that day, stating they will instead continue the effort to put the measure on the 2025 ballot. Policy Matters Ohio Economist, Michael Shields, issued the following statement:
“Ohio needs a raise, whether through Senate Bill 256 awaiting action in the Senate or through a citizen-initiated ballot measure. Whatever path it takes, working people are eager to see a higher minimum wage.
“Nearly every year, Ohio working people set a new record for how much wealth they produce for the state and their employers. But that productivity is not reflected in their pay. Over more than four decades when worker productivity rose 76%, wages for the worker in the middle rose just 4%. For low-paid workers, the situation is even worse. The peak minimum wage was worth nearly $15 in today’s dollars, all the way back in 1968. This means that not only have low-paid workers shared none of the growth their work made possible, but have been pushed down. Today’s minimum wage workers are paid less than those of their grandparents’ generation. Accounting for inflation, minimum wage workers in Ohio are paid some 28% less than their counterparts were half a century ago.
“A $15 minimum wage by 2026 would benefit nearly 1 million Ohio workers, who would take home more than $2,100 in new wages each year on average. Half of these workers make less than the proposed $15 wage, while half make a little more and would likely see a raise as employers adjusted pay scales to attract or retain workers with more experience. Those benefits cut across race and gender. Some 30-33% Ohio workers who are Black, Latine, or people of other races would get a raise, along 16% of Asian and 17% of white Ohio workers. Three in five workers who would benefit are women. The minimum wage is a tool to make Ohio’s job market more just.
“Passing a $15 minimum wage would bring Ohio into line with 14 states plus D.C., which have already passed a minimum wage of $15 or more; states where 42% of Americans live. Though voters will be disappointed not to see the minimum wage on this November’s ballot, the need for a livable wage floor remains. Whether through legislation or a later ballot measure, Ohio needs a minimum wage that meets the cost of living and recognizes the value of work.”