Labor Day Report from the Michigan League for Public Policy

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    PROMOTING ECONOMIC SECURITY THROUGH RESEARCH AND ADVOCACY

    1223 TURNER STREET SUITE G1 LANSING, MICHIGAN 48906

    P: 517.487.5436 F: 517.371.4546 WWW.MLPP.ORG

    A UNITED WAY AGENCY

    August 2014

    Yannet Lathrop, Policy Analyst

    Labor Day in Michigan Report:

    Pay Falls for Low-Wage Men yet Women Still Far Behind

    Raising the minimum wage, strengthening workplacepolicies, restoring the Earned Income Tax Credit,increasing funding for educaon and encouraging

    unionizaon would help correct dramac wage losses in

    Michigan since 1979. Wages in the state have dropped

    over the past 35 years, parcularly for low- and middle-

    wage men. Over this same period of me, womenswages, parcipaon in the labor force and educaonal

    aainment have increased somewhat. Yet, gender-based

    wage disparies persist. The labor and economic policies

    suggested above would boost the pay of Michigan

    workers of all genders, and help close the gender wage

    gap.

    WAGE TRENDS AND THE GENDER WAGE GAP

    For a number of years in the mid-tweneth century,

    wages rose in tandem with producvity. Between 1949

    and 1979, producvity (a measure of the value of goods

    and services that is produced, on average, per each hour

    of work) increased 108.1% naonwide, while wages for

    non-supervisory workers increased 93.4%.1 This suggests

    that economic prosperity was widely shared by

    businesses and employees, alike. Aer 1979, however,

    the link between producvity and wages began to break.

    Producvity connued to rise, though at a slower pace,

    while wages lagged substanally behind. Between 1979

    and 2013, producvity grew 64.9%, but hourly wages rosejust 8.2%.

    2

    In Michigan, compensaon for low- and mid-wage

    workers of prime working age3fell substanally between

    1979 and 2013.4 Real hourly wages dropped 13.4% for

    low-wage workers and 12.7% for mid-wage workers (see

    Appendix A.1). With the excepon of the years 1998 to

    2010, relavely high levels of educaonal aainment did

    lile to curb this trend. The median hourly wages of

    prime age workers with bachelors degrees fell 4.3%,

    while wages for workers with masters degrees or higher

    increased only 10.7%. Workers without a postsecondary

    educaon saw the steepest decreases: The wages of

    workers without a high school diploma dove 46.3%, whileworkers with only a high school educaon saw their

    wages decrease by 32.1% (See Figure 1 and Appendix

    A.2).

    Mens Wages in Michigan

    The wages of many Michigan male workers

    fared worse than the state average. Low-wage

    mens hourly earnings plummeted 31.2%, while

    mid-wage male workers wages fell 16.0%. The

    decline in male wages in Michigan con

    nuedeven during the naonwide labor market strength of the

    late 1990s.5 The sharp wage decline abated just a bit

    during this me, but did not result in wage increases for

    male workers earning at or under the middle of the wage

    distribuon (see Figure 2).

    Michigan Womens Wages

    From 1979 to the late 1990s, wages for low-

    and mid-wage women declined or saw only

    modest improvements. However, beginning in

    the late 1990s, wages for these workers

    improved the most, averaging 14.6% between

    1999 and 2010 for mid-wage women, and 11.3% for low-

    wage women, before dropping substanally aer 2010.

    Overall, real hourly earnings for low-wage women

    increased only 4.2% in 2013 relave to 1979, and 10.1%

    for mid-wage women (see Figure 3).

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    Source: Economic Policy Institute analysis of Current Population Survey Outgoing Rotation Group microdata, 1979-2013Prepared by Michigan League for Public Policy

    FIGURE 1

    Change in Median Wage by Education Attainment, 1979-2013

    Hourly Earnings of Low-Wage Michigan Men Plummet, 1979-2013

    FIGURE 2

    Source: Economic Policy Institute analysis of Current Population Survey Outgoing Rotation Group microdata, 1979-2013Prepared by Michigan League for Public Policy

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    While the rest of the Michigan workforce saw a decline or

    stagnaon in their hourly earnings, the wages of the

    highest paid workers of any gender grew consistently

    parcularly of those earning at the top 10% of the wage

    distribuon. Their wages increased between 8.3% and

    39.7% from 1979 to 2013 (see Appendix A.1). Disparity in

    wage growth with increases for a relavely small sector

    of the workforce and declines for the vast majority is

    one of the most important factors influencing the

    shrinking of the middle class and the faltering of living

    standards in the country.6

    Gender Wage Gap

    As will be shown in the next two secons of this report,

    over the past three decades, women have increased their

    labor force parcipaon and have obtained educaonalcredenals at greater proporons than their male

    counterparts. These improvements help explain the rise in

    womens wages7 parcularly for women earning in the

    top 20% of the wage distribuon (see Figure 3 and

    Appendix A.1) and the narrowing of the gender wage

    gap.

    The gender wage gap the difference between the

    earnings of women relave to mens began to improve

    naonwide in the late 1970s. According to one

    calculaon, the naonwide gender wage gap decreased

    from 37.3% in 1979 to 17.2% in 2012. However, more

    than one-quarter of this improvement can be traced to

    the erosion of mens wages, rather than to gains in

    womens wages.8 As we saw above, the wages of

    Michigan men of prime working age, earning at or under

    the middle of the wage distribuon, declined sharply by

    as much as 31.2% between 1979 and 2013.

    Economists cauon that a narrowing of the wage gap

    based on decreases in mens wages is problemac, as it

    hurts not only men, but also women. The same factors

    that harm mens wages are also exerng a negave

    influence on womens wages. If, for a me, protecons

    against discriminaon, higher levels of educaonal

    aainment and increased labor force parcipaon helped

    curb the downward pressure on womens wages, policy

    choices such as monetary policy focusing on inflaon

    rather than full-employment, the deregulaon of

    industries, the weakening of labor standards, the erosion

    in the real value of the minimum wage, and decreased

    unionizaon threaten to reverse these posive wage

    gains in womens wages.9

    Source: Economic Policy Institute analysis of Current Population Survey Outgoing Rotation Group microdata, 1979-2013Prepared by Michigan League for Public Policy

    FIGURE 3

    Stagnating Hourly Earnings for Low-Wage Michigan Women, 1979-2013

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    Despite wage gains for women (and wage losses for men),

    Michigan women experience the seventh-widest gender

    wage gaps (26.3%) in the naon.11

    On average, Michigan

    women working full-me year-round earned just $0.74

    for every $1 a similarly employed man earned.12

    The

    states gender wage gap has been stuck in the 70-centrange since 2005, despite nominal increases in the states

    wage floor13

    (see Table 1). The wage gap for women of

    color is much wider: In 2012, an African American woman

    made just two-thirds what a man made ($0.67 for every

    $1), and a Hispanic woman earned a lile over one-half

    ($0.54).14

    The persistence of a gender wage gap is influenced in part

    by womens connued over-representaon in the low-

    wage workforce (see Table 2 and appendices C and D).

    Although women 16 years and over composed around

    half (49%) of Michigans overall workforce between 2008

    and 2012, they represented well over two-thirds (69%) ofthe low-wage workforce.

    15The share of women of prime

    working age who are employed in low-wage occupaons

    was 20.8% in 2012, while for men this share was just

    8.9%. This makes women in the state more than twice as

    likely as men to be low-wage workers.16

    Occupaon

    Poron of

    Workforce

    that is Female

    (U.S.)17

    Total

    Number

    Employed

    (Michigan)18

    Median

    Hourly

    Wage

    (Michigan)18

    Median

    Annual

    Wage

    (Michigan)18

    Childcare Workers 95% 17,850 $8.73 $19,870

    Home Health Aides 89% 35,740 $9.88 $20,560

    Maids and Housekeepers 88% 19,020 $10.09 $21,000

    Personal Care Aides 84% 20,230 $9.87 $20,520

    Cashiers 72% 93,450 $9.13 $18,980

    Waiters and Waitresses 70% 72,780 $8.75 $18,200

    Combined Food Preparers

    and Servers65% 93,170 $8.73 $18,150

    Bartenders 58% 15,990 $8.83 $18,360

    Food Preparers 56% 22,320 $9.49 $19,750

    Hand Packers and Packagers 49% 16,590 $9.65 $20,070

    Low-Wage Occupations with Largest Female Representation

    TABLE 2

    Trends in Gender Wage Gap and Minimum Wage in Michigan, 2005-2012

    2005 2006 2007 2008 2009 2010 2011 2012

    Female to Male Earnings, Per $110

    $0.70 $0.71 $0.72 $0.72 $0.72 $0.74 $0.74 $0.74

    Michigan Minimum Wage (Nominal Value) $5.15 $6.95 $7.15 $7.40 $7.40 $7.40 $7.40 $7.40

    Michigan Minimum Wage (Real Value,

    2013 dollars)

    $6.14 $8.03 $8.03 $8.01 $8.04 $7.91 $7.66 $7.40

    TABLE 1

    Sources: Wage gap: National Womens Law Centers analysis of the Annual Social and Economic Supplement (Current Population

    Survey) and the American Community Survey. Nominal minimum wage: Tax Policy Center.

    Produced by Michigan League for Public Policy.

    Sources: National Womens Law Center analysis and the May 2013 State Occupational Employment and

    Wage Estimates of the Bureau of Labor Statistics.

    Produced by Michigan League for Public Policy.

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    However, the over-representaon of women in low-wage

    occupaons does not, alone, explain the gender wage

    gap. High-earning women have not been spared the

    pernicious effects of wage disparity. In fact, they

    experience the highest wage gap among all groups in the

    wage distribuon (see Appendix A.3). While low-wage

    women earn $1.53 less than men in the same wage group

    (a 12.91% difference) and have a wage gap of $0.13,women in the highest-wage group earn $9.67 less than

    their male counterparts (a 23.6% difference) and have a

    wage gap of $0.21.

    Various research has found that a significant proporon

    of the wage gap (between 7% and 12%) cannot be

    explained away by womens choices in occupaon.19

    This

    unexplained wage gap hurts even college-educated

    women many of whom, 10 years aer graduaon, earn

    just 69% of what men earn. One possible explanaon is

    that when women become mothers, they experience amotherhood penalty that extends well beyond the me

    they are out of the workforce. Research suggests that

    employers are less likely to hire mothers compared with

    childless women, and that when they do hire mothers,

    they tend to offer these women lower salaries than their

    childless counterparts. Fathers, on the other hand, do not

    suffer a similar parental penalty.20

    Differences in the

    treatment of men and women and mothers and fathers

    likely account for a significant poron of the

    unexplained wage gap, and the overall wage gap.

    WOMENS CONTRIBUTION TO THE ECONOMY

    While the gender wage gap persists and the wages for the

    majority of women have stagnated, the contribuon of

    female workers to the naons economy has increased

    over the past 35 years. If women had abstained from

    working outside the home from 1979 to 2012, the

    economy would be significantly smaller than it is now.21

    Naonwide, the share of women working full-me year-

    round increased significantly, from 28.6% in 1979, to a

    peak of 44.2% in 2000, before decreasing slightly to 40.7%

    in 201222

    in the wake of the Great Recession and the

    jobless recovery that followed.23

    The increase in the share

    of mothers working full-me year-round was even more

    dramac, rising from 27.3% in 1979 to 46.0% in 2007 and

    44.1% in 2012.24

    Womens work hours nearly doubled

    between 1979 and 2007 from 925 annual hours to 1,820

    and increased 80% from 1979-2012 (a figure that

    accounts for the effects of the recession).25

    Employment

    trends for Michigan women are likely similar.

    During this period, womens contribuon to their total

    household incomes also increased substanally,

    parcularly for low-income families. While in 1979, low-

    income women contributed just over one-third (33.5%) of

    their total household earnings, by 2012 their contribuon

    rose to nearly half (45.8%). For middle-income

    households, womens contribuon rose from 25.0% to

    38.6%, and for wealthier households, from 23.8% to

    33.5%.26

    Through their increased parcipaon in the labor market

    and the greater number of hours worked, women helped

    expand the naons economy by $1.7 billion (11%) from

    1979 to 2012. This increase in the economy is equivalent

    to almost twice the combined contribuon of the

    informaon, communicaons and technology industries

    in 2012.27

    DEMOGRAPHIC PORTRAIT OF MICHIGAN

    WOMEN

    Women are the backbone of Michigans economy. In

    2012, women made up over half (51.7%) of the states

    populaon of prime working age and a slightly smaller but

    highly significant share (48.9%) of the total employed

    populaon in this age group.28

    Michigan women have relavely high levels of educaon.With the excepon of professional and doctorate-level

    degrees, they hold higher shares of various postsecondary

    degrees compared to men, including 58.1% of bachelors

    and 57.1% of masters degrees (see Table 3).

    TABLE 3

    Degrees All Men Women

    Associate 100% 41.40% 58.60%

    Bachelors 100% 41.90% 58.10%

    Masters 100% 42.90% 57.10%

    Professional 100% 66.60% 33.40%

    Doctorate 100% 68.20% 31.80%

    Womens and Mens Shares of

    Postsecondary Degrees (Ages 25-64)

    Source: 2013 Annual Social and Economic Supplement, Current

    Population Survey (CPS), U.S. Census Bureau.

    Produced by Michigan League for Public Policy.

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    When looking at the states female populaon, alone, we

    can observe that nearly half (45.3%) of Michigan women

    of prime working age hold postsecondary degrees of any

    type, including 20.6% with bachelors, 13.5% with an

    associate, and 9.4% with masters degrees. Another 20.7%

    aended college but did not earn a degree (see Figure 4and Appendix B).

    Michigan men of this age group, in comparison, have

    significantly lower levels of postsecondary educaonal

    aainment. Only 37.6% of men in the state hold a

    postsecondary degree of any type, including 15.9% with a

    bachelors, 10.2% with an associate and 7.5% with a

    masters degree. However, a higher percentage of men

    have doctorates or professional degrees (4.0%), than do

    women (1.8%).Total postsecondary educaonal aain-

    ment at the naonal level is 46.4% for women and 41.3%

    for men.

    Over the past three decades, womens parcipaon in the

    labor force increased significantly, while mens and the

    states average for all genders decreased. From 1979 to

    2013, the labor force parcipaon rate29

    for women 16

    years and older increased 4 percentage points from 50.7%

    Gender

    Business Cycle Peaks Latest

    Year

    (2013)

    Change

    1979 1989 2000 20071979-

    1989

    1979-

    2007

    1979-

    2013

    Women 50.70% 56.50% 61.20% 59.20% 54.90% 5.80% 8.50% 4.20%

    Men 79.00% 75.70% 76.70% 69.40% 66.50% -3.30% -9.60% -12.50%All 64.30% 65.80% 68.70% 64.20% 60.50% 1.50% -0.10% -3.80%

    Michigan Womens and Mens Labor Force Participation at Business Cycle Peaks

    (Ages 16 and Over)

    TABLE 4

    Source: Economic Policy Institute analysis of Current Population Survey data.

    Produced by Michigan League for Public Policy.

    Women

    Educational Attainment in Michigan, by Gender (Ages 25-64)

    FIGURE 4

    Men

    High School

    Diploma or Less

    34.1%

    High School

    Diploma or Less

    41.6%

    Some College

    20.7%

    Some College

    20.7%

    Associate

    Degree

    10.2%

    Associate

    Degree

    13.5%

    Bachelors

    Degree

    20.6%

    Bachelors

    Degree

    15.9%

    Masters

    Degree

    9.4%

    Masters

    Degree

    7.5%

    Doctorate or

    Professional Degree

    1.8%

    Doctorate or

    Professional Degree

    4.0%

    Source: 2013 Current Population Survey Annual Social and Economic Supplement

    Produced by Michigan League for Public Policy.

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    to 54.9%, while mens parcipaon fell 13 percentage

    points from 79.0% to 66.5% (see Table 4). In 2012, women

    of prime working age had a much higher labor force

    parcipaon rate (70.3%), making their contribuon to

    the states economy vital. (Mens labor force parcipaon

    rate for this age group was 80.7%).

    Michigan women are more likely than their male

    counterparts to live in poverty, despite increases in

    educaonal aainment and labor force parcipaon. Of

    the states populaon of prime working age who are living

    in poverty, over half (54.7%) are women.30

    In fact, the

    states poverty rate for women of this age group is 24.8%

    nearly 6 percentage points higher than the rate for

    men.31

    Female-Headed Households

    The poverty rate of Michigans female-headed households

    in the prime working age group is higher than for womenof this age group as a whole. Although these households

    had an employment rate of 70.8% in 2012, over one-

    quarter (27.7%) lived in poverty. Their median household

    income was just $35,030.32

    Of the almost 315,300 low-income working families in

    Michigan, more than two in five (41.9%) are headed by

    women.33

    Although mothers of very young children make

    up just 4.6% of the states workforce, they represent a

    higher share (6.9%) of the low-wage workforce.34

    One in

    five (22.0%) of these mothers were employed in a low-

    wage occupaon.

    In 2012, significant shares of Michigan working

    households (whether headed by women or men, or both

    equally) received food assistance (formerly known as food

    stamps and now called the Supplemental Nutrion

    Assistance Program, or SNAP). Almost half (48.8%) of

    working families with household incomes below 200% of

    the federal poverty threshold received food assistance.

    The SNAP parcipaon rate for families below 100% of

    poverty was even higher close to three-quarters

    (70.3%).35

    MEDIAN WAGES IN THE MIDWEST: A

    COMPARISON

    As we saw in the first secon of this report, median wages

    dropped 12.7% in Michigan between 1979 and 2013. The

    drop was larger for low-wage workers (13.4%), while high-

    wage workers saw their wages increase by 8.3% or more

    (see Appendix A.1). Mens wages declined more than

    womens.

    Much of the Midwest also experienced wage declines or

    stagnaon. Illinois and Indiana both had negave real

    median wage growth, while wages stagnated in

    Wisconsin, Iowa and Missouri, which experienced growth

    between 0% and 2.3%. Minnesota, on the other hand,

    State

    All Men Women

    Change

    1979-

    2013

    1979 2013

    Change

    1979-

    2013

    1979 2013

    Change

    1979-

    2013

    1979 2013

    Michigan -12.70% $20.66 $18.03 -16.00% $23.78 $19.97 10.10% $14.73 $16.22

    Illinois -4.10% $19.75 $18.94 -13.30% $24.21 $21.00 16.80% $14.81 $17.29

    Indiana -0.90% $17.37 $17.21 -13.90% $21.70 $18.69 22.60% $12.56 $15.40

    Wisconsin 0.00% $18.50 $18.50 -11.80% $22.65 $19.97 25.60% $13.46 $16.90

    Iowa 1.90% $17.20 $17.53 -9.50% $21.35 $19.33 22.60% $12.86 $15.77

    Missouri 2.30% $17.29 $17.68 -10.90% $22.04 $19.63 23.50% $12.85 $15.87

    Minnesota 11.00% $18.17 $20.17 -4.90% $23.15 $22.03 40.10% $13.54 $18.97

    Difference (MN-MI) 23.7 percentage points 11.1 percentage points 30.0 percentage points

    Real Median Wages in the Midwest (Ages 25-64)

    TABLE 5

    Source: Economic Policy Institute analysis of Current Population Survey Outgoing Rotation Group microdata, 1979-2013. Inflation

    adjusted to 2013 dollars.

    Produced by Michigan League for Public Policy.

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    bucked the trend. The state

    saw real median wage growth

    of 11%, much of it occurring

    aer 1997, around the me

    when the naons workers

    enjoyed the employment and

    wage benefits of a ght labor

    market. The difference inwage growth between

    Minnesotas and Michigans

    wage trends between 1979

    and 2013 is a whopping 23.7

    percentage points (see Table

    5 and Figure 5).

    Mens median wages

    throughout the Midwest also

    declined significantly nearly

    all of it in the double-digitrange. Michigan led the pack,

    with the steepest decline of

    16.0%, while Minnesota,

    though unable to avoid

    negave growth, saw the

    smallest decline in the region:

    4.9% (see Table 5 and Figure

    6). Once again, the turning

    point seems to be the late

    1990s, when mens wage

    decline in Minnesota began to

    lose steam (and in fact,

    turned posive between 1999

    and 2005) while in Michigan it

    connued on a downward

    trend that accelerated aer

    2009.

    Although all Midwestern

    states experienced posive

    wage growth for women,

    Minnesota and Michigan

    stand out once again. Women

    in Minnesota saw the most

    cumulave wage growth in

    the region (40.1%), while Michigan women saw the least

    (10.1%). In 1979, women in Minnesota were paid 8.8%

    less than women in Michigan. But by 2013, the formers

    wages had surpassed the laers. Minnesota women now

    earn 17.0% more than their Michigan counterparts. Unlike

    male wages, the diverging trends in female wages in

    Minnesota and Michigan began much earlier than the late

    1990s. By 1982, womens wages in Michigan had turned

    negave (2.5%), while in Minnesota they had turned

    posive (2.0%). This trend picked up steam in the late

    Change in Real Median Wages in Michigan and Minnesota,

    All Genders (1979-2013)

    FIGURE 5

    Source: Economic Policy Institute analysis of Current Population Survey Outgoing Rotation Group microdata,1979-2013Prepared by Michigan League for Public Policy

    Change in Real Median Wages in Michigan and Minnesota,

    by Gender (1979-2013)

    FIGURE 6

    Source: Economic Policy Institute analysis of Current Population Survey Outgoing Rotation Group microdata,1979-2013Prepared by Michigan League for Public Policy

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    1990s, resulng in the 30 percentage point gap that exists

    today.

    What explains the dramac differences seen in Minnesota

    and Michigan? One part of the answer points to

    deindustrializaon. Over the past two decades, Michigan

    has struggled with a declining manufacturing sector, much

    of it concentrated around the auto industry. This industry,

    which throughout much of the tweneth century hadexpanded the middle class in Michigan and especially in

    Detroit began to falter with the global decline in

    manufacturing, foreign compeon in the auto industry,

    and the increased automaon of many assembly-line

    jobs.36

    From 1990 to 2011, manufacturing employment in

    Michigan declined by 37% and employment earnings in

    this sector declined by a similar figure (35%).

    Deindustrializaon and the near collapse of the auto

    industry led to a decade-long recession in the state, from

    which Michigan is sll recovering. Minnesota was not as

    reliant on the manufacturing sector, and certainly not on

    the auto industry. During this same period of me,

    manufacturing employment in the state fell by a relavely

    smaller rate (11%), while related employment earnings fell

    6%.37

    While manufacturing was declining, the knowledge-based

    sector of the economy was expanding, and Minnesota was

    able to take advantage of it. The knowledge-based

    economy, in which todays high-wage jobs are

    concentrated, can be defined as producon and services

    based on knowledge-intensive acvies such as

    informaon technology, finance, insurance and private

    health care and social services.38

    Between 1990 and 2011,

    Minnesota grew its employment in the knowledge-based

    economy by 60%, twice Michigans rate of 30%.

    Minnesotas employment earnings in this sector expanded

    even more: 74%, more than twice Michigans 32%

    growth.39

    While deindustrializaon and the near collapse of the

    domesc auto industry were, to some extent, unavoidable

    and greatly impacted Michigans economy something

    that Minnesota was mostly spared that alone did not set

    these two states is such diverging economic paths. Policy

    choices have played an important role in their differing

    outcomes.

    Minnesota is a high-tax state, which enables it to invest

    more in its residents. Since the early 1970s, Minnesota

    lawmakers have made the conscious choice to implement

    and protect various tax and fiscal reforms collecvely

    known as the Minnesota Miracle that succeeded in

    curbing disparies in the quality of public educaon, and

    shied more of the burden of financing local governments

    from property taxes to state income and sales taxes.40

    Minnesota has a progressive state income tax rate that

    varies between 5.35% and 9.85%, with the higher tax rate

    reserved for wealthier Minnesotans. In contrast, Michigan

    has a flat income tax rate of 4.25%, which applies to

    everyone rich or poor. In combinaon with other state

    and local taxes, Minnesotas tax structure allowed it to

    collect $5,016 in taxes, per capita, in 2011. In contrast,

    Michigans combined state and local taxes, per capita in

    2011, was just $3,655. Minnesotas enhanced ability to

    collect revenue also allows it to spend more on services

    for its residents compared to Michigan: $4,443 per capita

    in Minnesota vs. $2,813 in Michigan.41

    Minnesotas spending priories include early childhood

    educaon, K-12 educaon, higher educaon, the states

    social safety net, infrastructure and public transit all of

    which are funded much more generously than in

    Michigan,42

    and all of which help prepare its workforce for

    the demands of the modern global economy and give

    Minnesotans a chance to succeed even in bad mes.

    The stark differences in wages seen in Minnesota and

    Michigan, therefore, should not come as a surprise.

    Minnesotas wage gains are in great part the result of the

    states resolve to invest in the public good, while

    Michigans wage declines are the result of both a shi in

    the global economy and, most importantly, of policy

    choices that have hurt its working men and women.

    POLICY RECOMMENDATIONS

    Raise the Minimum Wage and Eliminate the Tipped

    Wage. Raising the wage floor to $10.10 per hour would

    reduce poverty in the state (including child poverty), boost

    the states economy, and create thousands of jobs.43

    Increasing the minimum wage, and in parculareliminang the pped wage would also help reduce the

    gender wage gap. As discussed above, women are more

    likely than men to work in low-wage occupaons,

    including jobs as servers in the restaurant industry where

    they make up 70% of the workforce.44

    The Michigan

    Legislature recently passed a law that would increase the

    states minimum wage to $9.25 by 2018 and index it to

    inflaon. This law also pegged the pped wage to 38% of

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    MICHIGAN LEAGUE FOR PUBLIC POLICY | AUGUST 2014 PAGE 11

    ENDNOTES

    1. Josh Bivens, Elise Gould, Lawrence Mishel and Heidi Shierholz, Raising Americas Pay: Why Its Our Central Economic Policy

    Challenge, Economic Policy Instute, June 2014.

    2. Ibid.

    3. Although more commonly referring to individuals between the ages of 25 and 54, in this report populaon of prime working

    age refers to persons 25 to 64 years of age. This expanded definion allows us to capture data for workers who are midwaybetween the minimum age (62) for the receipt of paral Social Security benefits, and the age (66) for the receipt of full bene-

    fits and therefore near full-rerement. Unless otherwise noted, data in secons Wage Trends and the Gender Wage Gap and

    Demographic Portrait of Michigan Women will refer to this age group only.

    4. Low-wage workers are those with hourly earnings in the 20th percenle of the wage distribuon. Mid-wage workers are those

    with earnings exactly in the middle. High-wage workers are those with earnings in the 80th percenle, and top 10% are work-

    ers with earnings in the 90th percenle.

    5. During the late 1990s, the naon as a whole experienced low levels of inflaon and unemployment, a producvity surge that

    was mostly led by computer-based informaon technology, and an increase in the federal minimum wage. These events led to

    a short-lived but posive increase in hourly wages for workers of all gender at the naonal level. Michigan bucked this wage

    trend, however. For more informaon of the dynamics of the U.S. labor market during this period, see Lawrence F. Katz and

    Alan B. Krueger, The High Pressure U.S. Labor Market of the 1990s, Brookings Papers on Economic Acvity, 1999; and Gavin

    Wright, Producvity Growth and the American Labor Market: The 1990s in Historical Perspecve, Understanding the 1990s,in Paul Rhode and Gianni Toniolo (eds.), Cambridge University Press, 2006.

    6. Josh Bivens et al. Op. Cit.

    7. Heidi Shierholz, Commentary: The Wrong Route to Equality Mens Declining Wages, Economic Policy Instute, June 12, 2013.

    8. Ibid.

    9. Ibid.

    10. Data refers to workers 16 years and older, working full me year-round.

    11. Julie Vogtman and Katherine Gallagher Robbins, Higher State Minimum Wages Promote Fair Pay for Women, Naonal Wom-

    ens Law Center, Mach 2014. Gender wage gap data refers to populaon 16 years and older.

    12. Ibid. The wage gap comparison is to earnings of non-Hispanic white males, who generally have the highest earnings among all

    men and whose earnings are, therefore, the benchmark on which the gender wage gap measurements (including those for

    minority women) are based.

    13. Increases in the minimum wage could potenally affect women more than men, because women are more likely than men tobe employed in low-wage occupaons. See discussion of the over-representaon of women in low-wage jobs, below.

    14. Naonal Womens Law Center, The Wage Gap by State for Women Overall, November 2013.

    15. Naonal Womens Law Center, Underpaid and Overloaded: Women in Low-Wage Jobs, July 2014. Here, the low-wage work-

    force is defined as those in occupaons with median hourly wages of $10.10 or less.

    16. Ibid.

    17. Joan Entmacher, Katherine Gallagher Robbins and Lauren Frohlich, Women are 76 Percent of Workers in the 10 Largest Low-

    Wage Jobs and Suffer a 10 Percent Wage Gap, Naonal Womens Law Center, April 2014.

    18. Esmates on total number employed, and median hourly and annual wages refer to workers (both genders combined)

    between the ages of 25 to 64 years.

    19. American Associaon of University Women, The Simple Truth About the Gender Wage Gap, Fall 2013.

    20. Ibid.

    21. Eileen Appelbaum, Heather Boushey and John Schmi. The Economic Importance of Womens Rising Hour of Work: Time toUpdate Employment Standards, Center for American Progress and Center for Economic and Policy Research, April 2014.

    22. Ibid. Data in this secon refers to women ages 16 to 64 years old.

    23. The Great Recession officially lasted from December 2007 to June 2009. However, high levels of unemployment remain a

    problem in several states, including Michigan, which in June 2014had an unemployment rate of 7.5%, the fourth highest in the

    naon and significantly above the naonal rate of 6.1%.

    24. Op. Cit. Data refers to mothers in households with children under the age of 18.

    25. Ibid.

    http://s1.epi.org/files/2014/raising-americas-pay-report-final.pdfhttp://s1.epi.org/files/2014/raising-americas-pay-report-final.pdfhttp://s1.epi.org/files/2014/raising-americas-pay-report-final.pdfhttp://s1.epi.org/files/2014/raising-americas-pay-report-final.pdfhttp://s1.epi.org/files/2014/raising-americas-pay-report-final.pdfhttp://s1.epi.org/files/2014/raising-americas-pay-report-final.pdfhttp://www.brookings.edu/~/media/Projects/BPEA/Spring%201999/1999a_bpea_katz.PDFhttp://web.stanford.edu/~write/papers/2664_001.pdfhttp://web.stanford.edu/~write/papers/2664_001.pdfhttp://web.stanford.edu/~write/papers/2664_001.pdfhttp://web.stanford.edu/~write/papers/2664_001.pdfhttp://web.stanford.edu/~write/papers/2664_001.pdfhttp://www.epi.org/publication/wrong-route-equality-mens-declining-wages/http://www.nwlc.org/sites/default/files/pdfs/higher_state_minimum_wages_promote_fair_pay_for_women_march_2014.pdfhttp://www.nwlc.org/sites/default/files/pdfs/nov2013_state_by_state_women_overallaahispanic.pdfhttp://www.nwlc.org/sites/default/files/pdfs/final_nwlc_lowwagereport2014.pdfhttp://www.nwlc.org/sites/default/files/pdfs/women_are_76_percent_of_workers_in_the_10_largest_low-wage_jobs_and_suffer_a_10_percent_wage_gap_april_2014.pdfhttp://www.nwlc.org/sites/default/files/pdfs/women_are_76_percent_of_workers_in_the_10_largest_low-wage_jobs_and_suffer_a_10_percent_wage_gap_april_2014.pdfhttp://www.nwlc.org/sites/default/files/pdfs/women_are_76_percent_of_workers_in_the_10_largest_low-wage_jobs_and_suffer_a_10_percent_wage_gap_april_2014.pdfhttp://www.nwlc.org/sites/default/files/pdfs/women_are_76_percent_of_workers_in_the_10_largest_low-wage_jobs_and_suffer_a_10_percent_wage_gap_april_2014.pdfhttp://www.nwlc.org/sites/default/files/pdfs/women_are_76_percent_of_workers_in_the_10_largest_low-wage_jobs_and_suffer_a_10_percent_wage_gap_april_2014.pdfhttp://www.nwlc.org/sites/default/files/pdfs/women_are_76_percent_of_workers_in_the_10_largest_low-wage_jobs_and_suffer_a_10_percent_wage_gap_april_2014.pdfhttp://www.nwlc.org/sites/default/files/pdfs/women_are_76_percent_of_workers_in_the_10_largest_low-wage_jobs_and_suffer_a_10_percent_wage_gap_april_2014.pdfhttp://www.nwlc.org/sites/default/files/pdfs/women_are_76_percent_of_workers_in_the_10_largest_low-wage_jobs_and_suffer_a_10_percent_wage_gap_april_2014.pdfhttp://www.aauw.org/files/2013/03/The-Simple-Truth-Fall-2013.pdfhttp://cdn.americanprogress.org/wp-content/uploads/2014/04/WomensRisingWorkv2.pdfhttp://cdn.americanprogress.org/wp-content/uploads/2014/04/WomensRisingWorkv2.pdfhttp://cdn.americanprogress.org/wp-content/uploads/2014/04/WomensRisingWorkv2.pdfhttp://cdn.americanprogress.org/wp-content/uploads/2014/04/WomensRisingWorkv2.pdfhttp://cdn.americanprogress.org/wp-content/uploads/2014/04/WomensRisingWorkv2.pdfhttp://cdn.americanprogress.org/wp-content/uploads/2014/04/WomensRisingWorkv2.pdfhttp://www.nber.org/cycles.htmlhttp://www.bls.gov/news.release/laus.nr0.htmhttp://www.bls.gov/news.release/laus.nr0.htmhttp://www.nber.org/cycles.htmlhttp://cdn.americanprogress.org/wp-content/uploads/2014/04/WomensRisingWorkv2.pdfhttp://www.aauw.org/files/2013/03/The-Simple-Truth-Fall-2013.pdfhttp://www.nwlc.org/sites/default/files/pdfs/women_are_76_percent_of_workers_in_the_10_largest_low-wage_jobs_and_suffer_a_10_percent_wage_gap_april_2014.pdfhttp://www.nwlc.org/sites/default/files/pdfs/final_nwlc_lowwagereport2014.pdfhttp://www.nwlc.org/sites/default/files/pdfs/nov2013_state_by_state_women_overallaahispanic.pdfhttp://www.nwlc.org/sites/default/files/pdfs/higher_state_minimum_wages_promote_fair_pay_for_women_march_2014.pdfhttp://www.epi.org/publication/wrong-route-equality-mens-declining-wages/http://web.stanford.edu/~write/papers/2664_001.pdfhttp://www.brookings.edu/~/media/Projects/BPEA/Spring%201999/1999a_bpea_katz.PDFhttp://s1.epi.org/files/2014/raising-americas-pay-report-final.pdf
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    MICHIGAN LEAGUE FOR PUBLIC POLICY | AUGUST 2014 PAGE 12

    26. Ibid. These figures are based on a middle three quinles definion of middle-class. See Appelbaum et al. for other definions

    of middle class and their respecve data. See also Craig K. Elwell, The Distribuon of Household Income and the Middle Class

    (Congressional Research Service, March 2014) for expanded definions of middle class.

    27. Ibid.

    28. Current Populaon Survey, Annual Social and Economic Supplements, 2013. U.S. Census Bureau, CPS Table Creator.29. The labor force parcipaon rate is the share of the civilian populaon who are either working or looking for work relave to

    the total civilian non-instuonal populaon, and should not be confused with the unemployment or the employment-to-

    populaon rates, which are difference measures. The labor force parcipaon rate can be influenced by individuals decisions

    to pursue educaon or to drop out of the labor market altogether, parcularly during economic downturns.

    30. Current Populaon Survey, Annual Social and Economic Supplements, 2013, op. cit.

    31. 2012 American Community Survey, 1-Year Esmates.

    32. Op. Cit.

    33. Deborah Povich, Brandon Roberts and Mark Mather, Low-Income Working Families and State Policy: Invesng for a Beer

    Economic Future, Working Poor Families Project, Winter 2013-2014. This data refers to households of any age group headed by

    women without a spouse present, with children under the age of 18.

    34. Helen Blank, Karen Schulman and Lauren Frohlich, Nearly One in Five Working Mothers to Very Young Children Work in

    Low-Wage Jobs, Naonal Womens Law Center, April 2014. The term mothers of very young children is defined as womenraising at least one child under the age of 3; the data refers to employed workers only. Low-wage occupaons is defined as

    occupaons with median hourly wages of $10.10 or less.

    35. Working Poor Families Project analysisof the 2012 American Community Survey microdata. Data does not specify age groups.

    36. Lou Glazer and Don Grimes, The New Path to Prosperity: Lessons for Michigan from Two Decades of Economic Change,

    Michigan Future, October 2013; and Thomas J Sugrue, Motor City: The Story of Detroit, The Gilder Lehrman Instute of

    American History, accessed August 13, 2014.

    37. Glazer and Grimes, ibid.

    38. Ibid.

    39. Ibid.

    40. Ibid.

    41. Ibid.

    42. Ibid.43. Yannet Lathrop,Raising the Minimum Wage: Good for Working Families, Good for Michigans Economy, Michigan League for

    Public Policy, February 2014.

    44. Yannet Lathrop,Raising the Minimum Wage Helps Women, Promotes Pay Equity, Michigan League for Public Policy, April 2014.

    45. Gilda Z. Jacobs, Michigan League for Public Policy, Tesmony on Senate Bill 934, House Government Operaons Commiee,

    May 21, 2014.

    46. Lawrence Mishel,Unions, Inequality, and Faltering Middle-Class Wages, Economic Policy Instute, August 29, 2012.

    47. Yannet Lathrop,The Michigan EITC: A Small Investment that Makes a Big Difference, Michigan League for Public Policy, June

    2013.

    48. Michael Mitchell, Vincent Palacios and Michael Leachman, StatesAre Sll Funding Higher Educaon Below Pre-Recession

    Levels, Center on Budget and Policy Priories, May 1, 2014.

    ENDNOTES

    http://fas.org/sgp/crs/misc/RS20811.pdfhttp://fas.org/sgp/crs/misc/RS20811.pdfhttp://fas.org/sgp/crs/misc/RS20811.pdfhttp://www.workingpoorfamilies.org/wp-content/uploads/2014/02/WPFP_Low-Income-Working-Mothers-Report_021214.pdfhttp://www.workingpoorfamilies.org/wp-content/uploads/2014/02/WPFP_Low-Income-Working-Mothers-Report_021214.pdfhttp://www.workingpoorfamilies.org/wp-content/uploads/2014/02/WPFP_Low-Income-Working-Mothers-Report_021214.pdfhttp://www.workingpoorfamilies.org/wp-content/uploads/2014/02/WPFP_Low-Income-Working-Mothers-Report_021214.pdfhttp://www.workingpoorfamilies.org/wp-content/uploads/2014/02/WPFP_Low-Income-Working-Mothers-Report_021214.pdfhttp://www.workingpoorfamilies.org/wp-content/uploads/2014/02/WPFP_Low-Income-Working-Mothers-Report_021214.pdfhttp://www.workingpoorfamilies.org/wp-content/uploads/2014/02/WPFP_Low-Income-Working-Mothers-Report_021214.pdfhttp://www.workingpoorfamilies.org/wp-content/uploads/2014/02/WPFP_Low-Income-Working-Mothers-Report_021214.pdfhttp://www.nwlc.org/sites/default/files/pdfs/mothers_of_young_children_in_low_wage_jobs.pdfhttp://www.nwlc.org/sites/default/files/pdfs/mothers_of_young_children_in_low_wage_jobs.pdfhttp://www.nwlc.org/sites/default/files/pdfs/mothers_of_young_children_in_low_wage_jobs.pdfhttp://www.nwlc.org/sites/default/files/pdfs/mothers_of_young_children_in_low_wage_jobs.pdfhttp://www.nwlc.org/sites/default/files/pdfs/mothers_of_young_children_in_low_wage_jobs.pdfhttp://www.nwlc.org/sites/default/files/pdfs/mothers_of_young_children_in_low_wage_jobs.pdfhttp://www.nwlc.org/sites/default/files/pdfs/mothers_of_young_children_in_low_wage_jobs.pdfhttp://www.nwlc.org/sites/default/files/pdfs/mothers_of_young_children_in_low_wage_jobs.pdfhttp://www.workingpoorfamilies.org/indicators/http://www.michiganfuture.org/cms/assets/uploads/2011/08/7-11-14-FINAL-web-single.pdfhttp://www.gilderlehrman.org/history-by-era/politics-reform/essays/motor-city-story-detroithttp://www.mlpp.org/wp-content/uploads/2014/02/Raising-Minimum-Wage.pdfhttp://www.mlpp.org/wp-content/uploads/2014/02/Raising-Minimum-Wage.pdfhttp://www.mlpp.org/wp-content/uploads/2014/04/Raising-Minimum-Wage-Helps-Women.pdfhttp://www.mlpp.org/wp-content/uploads/2014/04/Raising-Minimum-Wage-Helps-Women.pdfhttp://www.mlpp.org/wp-content/uploads/2012/03/Test-SB-934-Minimum-Wage.pdfhttp://www.mlpp.org/wp-content/uploads/2012/03/Test-SB-934-Minimum-Wage.pdfhttp://www.mlpp.org/wp-content/uploads/2012/03/Test-SB-934-Minimum-Wage.pdfhttp://www.mlpp.org/wp-content/uploads/2012/03/Test-SB-934-Minimum-Wage.pdfhttp://www.mlpp.org/wp-content/uploads/2012/03/Test-SB-934-Minimum-Wage.pdfhttp://www.mlpp.org/wp-content/uploads/2012/03/Test-SB-934-Minimum-Wage.pdfhttp://www.mlpp.org/wp-content/uploads/2012/03/Test-SB-934-Minimum-Wage.pdfhttp://s2.epi.org/files/2012/ib342-unions-inequality-middle-class-wages.pdfhttp://s2.epi.org/files/2012/ib342-unions-inequality-middle-class-wages.pdfhttp://www.mlpp.org/wp-content/uploads/2010/07/MI-EITC-Brief.pdfhttp://www.mlpp.org/wp-content/uploads/2010/07/MI-EITC-Brief.pdfhttp://www.mlpp.org/wp-content/uploads/2010/07/MI-EITC-Brief.pdfhttp://www.mlpp.org/wp-content/uploads/2010/07/MI-EITC-Brief.pdfhttp://www.cbpp.org/files/5-1-14sfp.pdfhttp://www.cbpp.org/files/5-1-14sfp.pdfhttp://www.cbpp.org/files/5-1-14sfp.pdfhttp://www.cbpp.org/files/5-1-14sfp.pdfhttp://www.cbpp.org/files/5-1-14sfp.pdfhttp://www.cbpp.org/files/5-1-14sfp.pdfhttp://www.cbpp.org/files/5-1-14sfp.pdfhttp://www.cbpp.org/files/5-1-14sfp.pdfhttp://www.cbpp.org/files/5-1-14sfp.pdfhttp://www.cbpp.org/files/5-1-14sfp.pdfhttp://www.cbpp.org/files/5-1-14sfp.pdfhttp://www.mlpp.org/wp-content/uploads/2010/07/MI-EITC-Brief.pdfhttp://s2.epi.org/files/2012/ib342-unions-inequality-middle-class-wages.pdfhttp://www.mlpp.org/wp-content/uploads/2012/03/Test-SB-934-Minimum-Wage.pdfhttp://www.mlpp.org/wp-content/uploads/2014/04/Raising-Minimum-Wage-Helps-Women.pdfhttp://www.mlpp.org/wp-content/uploads/2014/02/Raising-Minimum-Wage.pdfhttp://www.gilderlehrman.org/history-by-era/politics-reform/essays/motor-city-story-detroithttp://www.michiganfuture.org/cms/assets/uploads/2011/08/7-11-14-FINAL-web-single.pdfhttp://www.workingpoorfamilies.org/indicators/http://www.nwlc.org/sites/default/files/pdfs/mothers_of_young_children_in_low_wage_jobs.pdfhttp://www.workingpoorfamilies.org/wp-content/uploads/2014/02/WPFP_Low-Income-Working-Mothers-Report_021214.pdfhttp://fas.org/sgp/crs/misc/RS20811.pdf
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    MICHIGAN LEAGUE FOR PUBLIC POLICY | AUGUST 2014 PAGE 13

    Year

    A M W

    Low-

    Wage

    Mid-

    Wage

    High-

    WageTop 10%

    Low-

    Wage

    Mid-

    Wage

    High-

    WageTop 10%

    Low-

    Wage

    Mid-

    Wage

    High-

    WageTop 10%

    1979 $12.65 $20.66 $28.67 $34.33 $17.23 $23.78 $31.60 $37.69 $9.90 $14.73 $22.11 $25.86

    2013 $10.95 $18.03 $31.06 $41.81 $11.85 $19.97 $34.86 $45.79 $10.32 $16.22 $27.57 $36.12

    Change

    (1979-

    2013)

    -13.4% -12.7% +8.3% +21.8% -31.20% -16.0% +10.3% +21.5% +4.2% +10.1% +24.7% +39.7%

    YLH

    S

    HS

    E

    SC/

    A B A

    1979 $18.65 $21.58 $22.58 $26.12 $29.18

    2013 $10.02 $14.65 $15.95 $24.99 $32.30

    Change (1979-2013) -46.30% -32.10% -29.40% -4.30% 10.70%

    WD M W D($) D(%) WG

    Low-Wage: 20th percenle $11.85 $10.32 $1.53 13.80% $0.13

    Mid-Wage: 50th percenle $19.97 $16.22 $3.75 20.70% $0.19

    High-Wage: 80th percenle $34.86 $27.57 $7.29 23.40% $0.21

    Top 10%: 90th percenle $45.79 $36.12 $9.67 23.60% $0.21

    Appendix A

    Cumulative Changes in Real Wages for Workers of Prime Working Age (25-64) in Michigan,

    1979-2013 (Inflation adjusted to 2013 dollars)

    A.1: Change in Real Wages by Gender and Percenle

    A.2: Real Median Wages by Educaonal Aainment, All Genders Combined

    A.3: Gender Differences in Real Hourly Wage in 2013

    Source: Economic Policy Institutes analysis of Current Population Survey Outgoing Rotation Group microdata, 1979-2013.Produced by Michigan League for Public Policy.

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    MICHIGAN LEAGUE FOR PUBLIC POLICY | AUGUST 2014 PAGE 14

    HEM U.S.

    A M W A M W

    No High School Diploma 6.80% 7.80% 5.80% 10.30% 11.40% 9.40%

    High School Diploma or Equivalent 30.90% 33.80% 28.30% 28.50% 30.20% 26.80%

    Some College, No Degree 20.70% 20.70% 20.70% 17.20% 17.00% 17.40%

    Associate 11.90% 10.20% 13.50% 10.60% 9.30% 11.70%

    Bachelors 18.30% 15.90% 20.60% 21.60% 20.70% 22.50%

    Masters 8.50% 7.50% 9.40% 8.60% 7.60% 9.60%

    Professional 1.30% 1.80% 0.80% 1.50% 1.80% 1.30%

    Doctorate 1.60% 2.20% 1.00% 1.60% 1.90% 1.30%

    Total with Postsecondary Degree 41.60% 37.60% 45.30% 43.90% 41.30% 46.40%

    Appendix B

    Educational Attainment by Gender, Michigan and the U.S. (Ages 25-64)

    Source: 2013 Annual Social and Economic Supplement, Current Population Survey (CPS), U.S. Census Bureau.Produced by Michigan League for Public Policy using the CPS Table Creator.

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    EMPLOYED MEDIAN WAGE %OF POVERTY WAGE1

    %BASIC NEEDS

    INCOME2

    Rank Occupation Title Number Hourly AnnualFamily

    of Three

    Family of

    Four

    One Parent,

    Two Children1 Retail Salespersons 138,640 $9.98 $20,770 110.7% 87.9% 47.0%

    2 Office Clerks, General 113,010 $13.63 $28,340 151.0% 120.0% 64.2%

    3 Cashiers 93,450 $9.13 $18,980 101.1% 80.3% 43.0%

    4Combined Food Preparation & Serving Workers,

    Including Fast Food93,170 $8.73 $18,150 96.7% 76.8% 41.1%

    5 Registered Nurses 91,840 $31.27 $65,050 346.6% 275.4% 147.3%

    6 Team Assemblers 87,700 $15.96 $33,190 176.8% 140.5% 75.2%

    7 Customer Service Representatives 77,850 $14.59 $30,340 161.6% 128.4% 68.7%

    8 Waiters & Waitresses 72,780 $8.75 $18,200 97.0% 77.0% 41.2%

    9Janitors & Cleaners, Except Maids & Housekeeping

    Cleaners68,540 $10.80 $22,450 119.6% 95.0% 50.8%

    10 General & Operations Managers 56,420 $43.76 $91,030 485.0% 385.3% 206.1%

    11 Laborers & Freight, Stock, & Material Movers, Hand 56,040 $12.38 $25,750 137.2% 109.0% 58.3%

    12 Stock Clerks & Order Fillers 55,900 $10.45 $21,740 115.8% 92.0% 49.2%

    13Sales Representatives, Wholesale & Manufacturing,

    Except Technical & Scientific Products54,710 $24.87 $51,740 275.7% 219.0% 117.2%

    14 Nursing Assistants 52,090 $12.68 $26,380 140.6% 111.7% 59.7%

    15 Heavy & Tractor-Trailer Truck Drivers 50,220 $18.02 $37,490 199.7% 158.7% 84.9%

    16Secretaries & Administrative Assistants, Except Legal,

    Medical, & Executive44,790 $16.04 $33,360 177.7% 141.2% 75.5%

    17 Teacher Assistants 42,060 * $25,560 136.2% 108.2% 57.9%

    18 Bookkeeping, Accounting, & Auditing Clerks 41,770 $17.05 $35,470 189.0% 150.1% 80.3%

    19 Maintenance & Repair Workers, General 36,480 $16.26 $33,820 180.2% 143.2% 76.6%

    20 Home Health Aides 35,740 $9.88 $20,560 109.5% 87.0% 46.6%

    21 Elementary School Teachers, Except Special Ed. 35,720 * $62,630 333.7% 265.1% 141.8%

    22 First-Line Supervisors of Retail Sales Workers 35,260 $17.26 $35,900 191.3% 152.0% 81.3%

    23 Mechanical Engineers 32,640 $41.93 $87,210 464.6% 369.3% 197.5%24 Cooks, Restaurant 32,640 $10.20 $21,210 113.0% 89.8% 48.0%

    25First-Line Supervisors of Office & Administrative

    Support Workers31,740 $22.67 $47,160 251.3% 199.6% 106.8%

    26 Business Operations Specialists, All Other 30,270 $29.97 $62,340 332.1% 263.9% 141.2%

    27 Receptionists & Information Clerks 29,400 $12.51 $26,020 138.6% 110.1% 58.9%

    28 Machinists 27,570 $18.62 $38,730 206.4% 163.9% 87.8%

    29 Accountants & Auditors 26,960 $29.99 $62,380 332.4% 264.1% 141.2%

    30 Light Truck or Delivery Services Drivers 26,730 $13.32 $27,700 147.6% 117.3% 62.7%

    31 First-Line Supvrs. of Food Prep. & Serving Wkrs. 26,720 $13.70 $28,490 151.8% 120.6% 64.5%

    32 Industrial Engineers 24,430 $37.17 $77,310 411.9% 327.3% 175.1%

    33 Substitute Teachers 24,410 $11.09 $23,070 122.9% 97.7% 52.2%

    34 First-Line Supvrs. of Production & Operating Wkrs. 24,410 $27.21 $56,590 301.5% 239.5% 128.1%

    35 Landscaping & Groundskeeping Workers 24,300 $11.17 $23,230 123.8% 98.3% 52.6%

    36 Inspectors, Testers, Sorters, Samplers, & Weighers 23,420 $16.14 $33,560 178.8% 142.1% 76.0%

    37 Security Guards 23,250 $11.32 $23,550 125.5% 99.7% 53.3%

    38 Medical Assistants 23,120 $13.48 $28,030 149.3% 118.7% 63.5%

    39 Food Preparation Workers 22,320 $9.49 $19,750 105.2% 83.6% 44.7%

    40Secondary School Teachers, Except Special &

    Career/Technical Education21,800 * $61,810 329.3% 261.6% 140.0%

    41 Construction Laborers 21,000 $16.92 $35,200 187.5% 149.0% 79.7%

    42 Personal Care Aides 20,230 $9.87 $20,520 109.3% 86.9% 46.5%

    43 Computer User Support Specialists 19,630 $20.17 $41,960 223.6% 177.6% 95.0%

    44 Automotive Service Technicians & Mechanics 19,630 $17.55 $36,500 194.5% 154.5% 82.6%

    45 Maids & Housekeeping Cleaners 19,020 $10.09 $21,000 111.9% 88.9% 47.6%

    46 Sales Representatives, Services, All Other 18,710 $20.98 $43,650 232.6% 184.8% 98.8%

    47 Helpers--Production Workers 18,590 $12.09 $25,150 134.0% 106.5% 56.9%

    48 Childcare Workers 17,850 $9.55 $19,870 105.9% 84.1% 45.0%49 Electricians 17,550 $27.28 $56,750 302.4% 240.2% 128.5%

    50 Shipping, Receiving, & Traffic Clerks 17,090 $14.81 $30,810 164.2% 130.4% 69.8%

    * Not available.

    Source: May 2013 State Occupational Employment and Wage Estimates, Bureau of Labor Statistics, U.S. Department of Labor.

    Produced by Michigan League for Public Policy.

    1Based on 2013 U.S. Census Bureau poverty thresholds ($18,769 for a one-parent/two-child family of three, and $23,624 for a two-parent/two-child family of four),

    and assuming year-round employment at 40 hours per week (2,080 hours per year), the poverty wage is $9.02 per hour and $11.36 per hour, respectively.2Based on calculations from the Michigan League for Public Policys Making Ends Meet in Michigan: A Basic Needs Income Level for Family Well-Being, March 2014.

    Appendix C

    Michigan Occupations with Highest Employment, 20131

  • 8/11/2019 Labor Day Report from the Michigan League for Public Policy

    16/16

    EMPLOYED MEDIAN WAGE %OF POVERTY WAGE1

    %BASIC NEEDS

    INCOME2

    Rank Occupation Title Number Hourly AnnualFamily

    of Three

    Family of

    Four

    One Parent,

    Two Children

    1 Combined Food Preparation & Serving Workers,

    Including Fast Food 93,170 $8.73 $18,150 96.7% 76.8% 41.1%2 Waiters & Waitresses 72,780 $8.75 $18,200 97.0% 77.0% 41.2%

    3 Dishwashers 14,260 $8.75 $18,200 97.0% 77.0% 41.2%

    4 Cooks, Fast Food 15,440 $8.77 $18,230 97.1% 77.2% 41.3%

    5 Bartenders 15,990 $8.83 $18,360 97.8% 77.7% 41.6%

    6 Hosts & Hostesses, Restaurant, Lounge, & Coffee Shop 10,400 $8.84 $18,380 97.9% 77.8% 41.6%

    7 Counter Attendants, Cafeteria, Food Concession, &

    Coffee Shop 13,060 $8.88 $18,480 98.5% 78.2% 41.8%

    8 Amusement & Recreation Attendants 7,490 $8.90 $18,520 98.7% 78.4% 41.9%

    9 Baggage Porters & Bellhops 810 $8.91 $18,530 98.7% 78.4% 42.0%

    10 Barbers * $8.91 $18,540 98.8% 78.5% 42.0%

    11 Dining Room & Cafeteria Attendants & Bartender

    Helpers 10,520 $8.93 $18,580 99.0% 78.6% 42.1%

    12 Cooks, Short Order 5,880 $8.96 $18,630 99.3% 78.9% 42.2%

    13 Parking Lot Attendants 2,990 $8.96 $18,640 99.3% 78.9% 42.2%14 Ushers, Lobby Attendants, & Ticket Takers 3,230 $8.98 $18,670 99.5% 79.0% 42.3%

    15 Legislators 2,310 * $18,890 100.6% 80.0% 42.8%

    16 Farmworkers, Farm, Ranch, & Aquacultural Animals3 580 $9.09 $18,900 100.7% 80.0% 42.8%

    17 Lifeguards, Ski Patrol, & Other Recreational Protective

    Service Workers 3,240 $9.11 $18,950 101.0% 80.2% 42.9%

    18 Cashiers 93,450 $9.13 $18,980 101.1% 80.3% 43.0%

    19 Shampooers 200 $9.12 $18,980 101.1% 80.3% 43.0%

    20 Door-to-Door Sales Workers, News & Street Vendors,

    & Related Workers * $9.13 $18,990 101.2% 80.4% 43.0%

    21 Food Preparation & Serving Related Wkrs, All Other 1,450 $9.15 $19,030 101.4% 80.6% 43.1%

    22 Grounds Maintenance Workers, All Other 360 $9.20 $19,140 102.0% 81.0% 43.3%

    23 Pressers, Textile, Garment, & Related Materials 780 $9.21 $19,150 102.0% 81.1% 43.4%

    24 Cleaners of Vehicles & Equipment 8,730 $9.30 $19,350 103.1% 81.9% 43.8%25 Skincare Specialists 740 $9.35 $19,460 103.7% 82.4% 44.1%

    26 Pharmacy Aides 690 $9.36 $19,470 103.7% 82.4% 44.1%

    27 Nonfarm Animal Caretakers 3,960 $9.42 $19,590 104.4% 82.9% 44.4%

    28 Hotel, Motel, & Resort Desk Clerks 6,170 $9.45 $19,660 104.7% 83.2% 44.5%

    29 Food Preparation Workers 22,320 $9.49 $19,750 105.2% 83.6% 44.7%

    30 Automotive & Watercraft Service Attendants 2,930 $9.50 $19,760 105.3% 83.6% 44.7%

    31 Gaming Dealers 3,920 $9.54 $19,850 105.8% 84.0% 44.9%

    32 Childcare Workers 17,850 $9.55 $19,870 105.9% 84.1% 45.0%

    33 Tour Guides & Escorts 940 $9.56 $19,880 105.9% 84.2% 45.0%

    34 Packers and Packagers, Hand 16,590 $9.65 $20,070 106.9% 85.0% 45.4%

    35 Coaches & Scouts 8,520 * $20,110 107.1% 85.1% 45.5%

    36 Library Assistants, Clerical 4,430 $9.69 $20,150 107.4% 85.3% 45.6%

    37 Taxi Drivers & Chauffeurs 3,440 $9.78 $20,340 108.4% 86.1% 46.1%

    38 Personal Care Aides 20,230 $9.87 $20,520 109.3% 86.9% 46.5%

    39 Home Health Aides 35,740 $9.88 $20,560 109.5% 87.0% 46.6%

    40 Hairdressers, Hairstylists, & Cosmetologists 12,410 $9.93 $20,650 110.0% 87.4% 46.8%

    41 Laundry & Dry-Cleaning Workers 6,000 $9.94 $20,680 110.2% 87.5% 46.8%

    42 Personal Care & Service Workers, All Other 1,150 $9.94 $20,680 110.2% 87.5% 46.8%

    43 Retail Salespersons 138,640 $9.98 $20,770 110.7% 87.9% 47.0%

    44 Crossing Guards 1,180 $10.05 $20,910 111.4% 88.5% 47.3%

    45 Recreation Workers 10,020 $10.08 $20,960 111.7% 88.7% 47.5%

    46 Maids & Housekeeping Cleaners 19,020 $10.09 $21,000 111.9% 88.9% 47.6%

    47 Demonstrators & Product Promoters 2,830 $10.18 $21,170 112.8% 89.6% 47.9%

    48 Cooks, Restaurant 32,640 $10.20 $21,210 113.0% 89.8% 48.0%

    49 Farmworkers & Laborers, Crop, Nursery, &

    Greenhouse3 1,360 $10.20 $21,210 113.0% 89.8% 48.0%

    50 Food Servers, Nonrestaurant 6,650 $10.20 $21,220 113.1% 89.8% 48.0%

    * Not available.

    Source: May 2013 State Occupational Employment and Wage Estimates, Occupational Employment Statistics, Bureau of Labor Statistics, U.S. Department of Labor.

    Produced by Michigan League for Public Policy.

    1Based on 2013 U.S. Census Bureau poverty thresholds ($18,769 for a one-parent/two-child family of three, and $23,624 for a two-parent/two-child family of four),

    and assuming year-round employment at 40 hours per week (2,080 hours per year), the poverty wage is $9.02 per hour and $11.36 per hour, respectively.2Based on calculations from the Michigan League for Public Policys Making Ends Meet in Michigan: A Basic Needs Income Level for Family Well-Being, March 2014.

    3Although data from farm industries are excluded from the State Occupational Employment and Wage Estimates, the estimate does include data of certain farming

    occupations performed in nonfarm industries. For example, workers in the Farmworkers, Farm, Ranch, & Aquacultural Animals category are likely to be employed

    in nonfarm industries that support activities for animal production, by wholesalers of farm products or raw materials, or by slaughterhouses

    (http://www.bls.gov/oes/current/oes452093.htm). Workers in the Farmworkers and Laborers, Crop, Nursery, and Greenhouse are likely to be working in

    nonfarm industries that support activities for crop production, by wholesalers, or by lawn and garden equipment and supplies stores

    (http://www.bls.gov/oes/current/oes452092.htm).

    Appendix D

    Lowest Wage Nonfarm Occupations in Michigan, May 20131