The country is debating a $15/hour minimum wage and a ballot proposal, if approved, will place D.C. among the company of Seattle, San Francisco, and Los Angeles, which have already raised their minimum wages to $15/hour. If this happens, whose wages will be affected? We looked at D.C. workers who earn up to $15 an hour and where they live. It turns out, a majority of the workers who currently receive an hourly wage under $15 are not D.C. residents.
Using American Community Survey 2013 data, we found that almost 70 percent of D.C. workforce is comprised of out-of-state residents (roughly 550,000 out of 800,000). Furthermore, there were 50 percent more out-of-state resident workers than D.C.-resident workers who earned between $8 and $15 an hour.
• 550,000 Total out-of-state residents working in D.C.
• 250,000 Total D.C.-residents working in D.C.
• 60,000 Out-of-state residents who work in D.C. and earn between $8-15/hour.
• 40,000 D.C. residents who work in D.C. and earn between $8-15/hour.
Of the approximately sixty thousand under-$15/hour- workers who commute to the District, 63 percent come from the Maryland counties closest to D.C., especially Prince George’s county. Northern VA residents account for another 20 percent. The remainder commute from further-away places. This composition of residency is similar to the share among the higher income commuters.
What exactly is this data?
Data on where people live and work are from the 2013 American Community Survey (ACS) with a margin of error of +/-11%. This range does not overpower the effect for this research. The number of D.C. jobs, 800,000 include self-employed and military. Our monthly statistics on the jobs in the District is lower at about 750,000 because it excludes these two groups. We excluded from our analysis people making less than $8/hour—the minimum wage in D.C. is above that, which suggests that these people won’t be affected by another hike in the minimum wage.