Next, EPI economist Ben Zipperer commented Final rule of the U.S. Department of Labor Federal contractors are required to pay a minimum wage of $15 per hour from January 30, 2022. Zipperer estimates that the rule will benefit Up to 390,000 federal contractors, Half of them are black or Hispanic.

An interesting result worth noting is that given the large turnover of federal contractor companies, the policy may increase wages in other labor markets.

Although it cannot replace the universal minimum wage of $15, it may have important spillover effects

— Benzipper (@benzipperer) November 22, 2021

In addition, higher contractor wages may cause other companies in the local labor market to raise wages

Amazon’s recent $15 starting salary has increased the wages of other low-paying occupations. @EDerenoncourt @CLAMENSNOELK professor @Bledi_Taska https://t.co/VsAVa2aMGt pic.twitter.com/nyb1RAt3Li

— Benzipper (@benzipperer) November 22, 2021

We know from @Christa RufiniResearch shows that raising the minimum wage can increase the productivity of nursing homes:

The lower turnover rate improves the quality of nursing homes and the health of patients, in which case lives can actually be savedhttps://t.co/XjCjVOdcPm pic.twitter.com/FelSAIwtIJ

— Benzipper (@benzipperer) November 22, 2021

All in all, the new $15 federal contract minimum wage is a good policy, which is another measure to solve the labor market that cannot provide sufficient wages.

A detailed estimate of who will benefit can be found in my and @hshierholzOfficial comment https://t.co/O0YkvHZn2x pic.twitter.com/4ISzqfxVdZ

— Benzipper (@benzipperer) November 22, 2021