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In November 2012, fast-food workers in New York went on strike and the Fight for $15 was born. Over the last five years, the movement has lifted wages for more than 17 million workers across the nation by fighting for and winning numerous minimum wage policies (National Employment Law Project 2016). Substantial minimum wage increases are underway in California, New York, Oregon, and more than 30 cities and counties around the country. In states and cities covered by them, these new minimum wages will increase earnings for 25 to 40 percent of workers (Reich, Allegretto, and Montialoux 2017; Reich et al. 2016). After four decades of wage stagnation and rising inequality, the movement has delivered real, much needed, and meaningful progress in a remarkably short period of time.
Fast food has been iconic in the discussions of the minimum wage, from the influential mid-1990s research that found no negative employment impact of wage increases in the industry, to the fast-food workers who have walked out on strike in cities across the country in recent years (Card and Kruger 1995). But of course the reach of these wage increases extends well beyond fast food to underpaid workers in multiple industries. The dynamics of minimum wage increases vary across industries based on each industry’s specific structure.
Nowhere are the distinct dynamics more pronounced and challenging than for those employed in human services industries. This paper focuses on an important subset of these workers: those who provide homecare and early care and education services to the very young, people with disabilities, and those who are frail due to age or illness. We explain the pressing need to raise these workers’ wages and the unique structure of their industries that results in a funding squeeze for wage increases—at the root of this is the fact that most families are unable to afford all of the homecare and child care they need, never mind pay enough to ensure that workers earn a living wage, and public human services are chronically underfunded.
These workers provide a critical (but too often unrecognized) public good; as such, we argue that a significant public investment is a necessary part of the solution, both to deliver minimum wage increases to these workers and to cover the significant unmet need for care. We provide background about the shared and divergent challenges in the homecare and early care and education industries, as well as review emerging policy initiatives to fund wage increases for homecare and early care and education workers and identify principles for public policy going forward.
The UniverCity Alliance (UCA) at the University of Wisconsin-Madison is looking for a new local government partner for the UniverCity Year (UCY) program for the period of 2018-2021. Could this be your community?
First featured in the March 2018 Community Health issue of The Municipality - Your Voice. Your Wisconsin. Published by the League of Wisconsin Municipalities.
To be reprinted nationally in Current Municipal Problems, a quarterly, with a bound annual volume. For those interested in identifying and solving problems of local government, it is published by Thomson Rueters.
In the fourth quarter of 2017, Wisconsin added 12,500 jobs, most of them in October. In contrast to the strong October, in December, Wisconsin actually lost jobs. Still, over the quarter, the state’s job base grew. Growth was driven by private sector gains, with the state adding 15,200 private jobs. The state lost 2,700 public sector jobs across the quarter capping off a very weak year in the public sector. Wisconsin’s ended 2017 with 3,300 fewer public sector jobs than a year ago. Still, as with the quarter, so with the year. Private sector growth meant that the state jobs base grew 1.4 percent: Wisconsin added 40,200 jobs in 2017. The unemployment rate continues to drop slowly across the nation and Wisconsin is not an exception. Unemployment in Wisconsin stands now at 3.0%, significantly below the level of the end of 2016 and at its lowest point since the recession.
In the third quarter of 2017, Wisconsin posted modest job growth, adding just 7,300 jobs. Growth in September had to make up for job losses in the previous months. In August, the state lost 7,100 jobs – the worst month in jobs in more than a year. Private sector job growth in September was strong enough to make up for August’s losses and the state completed the third quarter of 2017 with 2,900 more private sector jobs. Wisconsin’s public sector has been unsteady but ended the quarter with 4,400 additional jobs after a strong September. Public sector employment is now slightly above the January level, despite losses over the summer. The unemployment rate continues to drop slowly across the nation and Wisconsin is not an exception. Unemployment in Wisconsin stands now at 3.5%, significantly below the level of the end of 2016, but up slightly from an early summer low of 3.1%.
For more than two decades now, annually, on Labor Day, COWS reports on how working people are faring in the state. The State of Working Wisconsin, released biannually on even-numbered years since 1996, is our long-form report, and looks at the economy comprehensively from a working-family perspective. In odd-numbered years, also biannually, we provide a more abbreviated and focused report, called The State of Working Wisconsin 2017: Facts & Figures. Income Inequality Near Record Levels
The income gap between the rich and the poor remains near its highest level ever, according to a new report by the Wisconsin Budget Project and COWS at UW Madison. The wide chasm between the very highest earners and everyone else poses hardships for Wisconsin’s families, communities, and businesses.