on workers were paid at hourly rates, representing about 61 percent of wage and salary workers. It is estimated that 3.3 million workers-4.6 percent of all workers who are paid an hourly rate-earn a wage at or below the current $5.15 Federal minimum. Of these 3.3 million workers, about 1.1 million reported a wage at exactly $5.15, while the remainder, 2.2 million, earned a wage less that $5.15. According to BLS figures compiled at the end of 1999, nearly 10.1 million employees age 16 and older, or about 14 percent of those paid by the hour, earn anywhere from $5.15 to $6.14 per hour. (See Appendix A)
             There are other workers who would also likely benefit from a $1.00 minimum wage increase in addition to those workers that report hourly wages between $5.15 and $6.14. There is also evidence that workers who earn wages just above the new minimum can see their pay rise as a result of the minimum wage increase.
             In addition, the BLS estimates that just over half of all low-wage workers are employed in the retail trade, while most of the rest works in either the service sector or in agriculture.
             The impact of the minimum wage hike would also vary by region, with the West having the fewest employees affected and the South having the greatest.
             IMPACT OF THE MINIMUM WAGE ON EMPLOYMENT
             The effects of minimum wage on employment and unemployment are widely debated. There are many academic studies that advocate different points of view. Some maintain that the wage increases cause employment to decline and business to fail as owners respond to rising labor costs. In addition, some warn that the wage increase may result in rising prices and reduced working hours, harming the low-wage workers the increase is designed to help. Alternatively, others insist that an increase in the minimum wage is an effective way to help the working poor, has minimal negative employment effects, and will not cause significant harm to business.
             Recent Economic...