San Francisco Deserves A Raise
San Francisco Minimum Wage Coalition
MINIMUM WAGE INDEX
August 6, 2003

MAKING ENDS MEET
National minimum wage: $5.15 per hour ($10,712 per year)
California Minimum wage: $6.75 per hour ($14,040 per year)
National minimum wage adjusted to San Francisco’s cost of living: $9.48 per hour ($19,718 per year)
California inflation adjusted (since 1968) minimum wage: $8.92 per hour ($18,554 per year)
“Self -sufficiency” wage for average family with two working adults in 2002: $12.51 per hour ($26,020 per year)
Proposed San Francisco minimum wage: $8.50 per hour ($17,680 per year)
Monthly income based on year-round, full-time employment at new minimum wage: $1,473
Average monthly rent for an apartment in San Francisco: $1,554

BROAD BENEFITS TO WORKERS
MINIMAL IMPACTS ON BUSINESS AND CONSUMERS
Number of people who will get a raise by increasing the local minimum wage: ~54,000
Number of children whose parents will get a raise by increasing the local minimum wage: 29,850
Average annual income increase through minimum wage increase: $1,946
Percentage of businesses seeing no more than 1% increase in operating costs: 82%
Percentage of businesses seeing no more than 5% increase in operating costs: 95%
Percentage of low-wage workers (earning under $7.50/hr) working in small businesses with fewer than 25 employees: 2.4%
Percentage of low-wage workers in businesses with more than 100 employees: 67%
Percentage of low-wage workers working at non-profit organizations: 7%
Average reduction in turnover in SFO operations, maintenance, and security positions resulting from $10/hr minimum wage: 34%
Change in total number of jobs in restaurant industry in SF Metropolitan Statistical Area (SF, SM, & Marin) between 1999 and 2003: +600
Change in total number of jobs in total SFMSA economy during that same period: -23,600
Average increase in the price of a $1.50 cup of coffee to pass on cost of wage increase: $.02

REAL BENEFITS TO ASIAN AMERICANS
Number of Asian-Americans working in San Francisco: 98,450
Number of Asian Americans who will get a raise by increasing the local minimum wage: 20,970
Percentage of workers to receive a raise who are Asian American: 40%
Percentage of these who are of Chinese descent: 55%
And those who are Filipino: 40%
Percentage of Chinese workers who will receive a raise and are San Francisco residents: 88%
Number of Asian American children whose parents will receive a raise: 20,450
Average annual income increase for Asian American workers: $1,929
Total increase in annual spending power of the Asian American community: $40.4 million

REAL BENEFITS TO AFRICAN AMERICANS
Number of African-Americans working in San Francisco: 24,000
Number of African Americans who will get a raise by increasing the local minimum wage: 4,300
Percentage of African-American workers who will receive a raise and are San Francisco residents: 45%
Number of African American children whose parents will receive a raise: 2,400
Average annual income increase for African American workers: $2,460
Total increase in annual spending power to the African-American community: $10.6 million

REAL BENEFITS TO LATINOS
Number of Latinos working in San Francisco: 55,500
Number of Latinos who will get a raise by increasing the local minimum wage: 12,000
Percentage of Latino workers who will receive a raise and are San Francisco residents: 71%
Number of Latino children whose parents will receive a raise: 4,050
Average annual income increase for Latino workers: $1,690
Total increase in annual wage income to the Latino community: $20.3 million

REAL BENEFITS TO YOUNG ADULTS
Number of young adults under 25 who will receive a raise: 17,000
Number of young adults between 18 and 25 who will receive a raise:15,870
Percentage who live in San Francisco: 64%
Percentage who are youth of color: 62%
Percentage who are currently students: 54%
Increase in fees for full time students at San Francisco City College since 2001: $210
Increase in fees for full time students at San Francisco State University since 2001: $727
Average annual income increase for students under 25: $1,154
Total increase in annual wage income to young adults: $24.7 million

Sources:
California Budget Project
California Employment Development Department, available at www.calmis.ca.gov
Reich and Laitinen, 2002; available at www.iir.berkeley.edu
San Francisco Chronicle, Higher – and higher education, Tanya Schevitz, July 29, 2003; available at www.sfgate.com
US Census 1% Microdata Sample, 2000; available at www.ipums.org
Young Worker Project
Income and demographic estimates are from author’s calculations. Methodology is available upon request