Employment Policies Institute

Last updated
Employment Policies Institute
AbbreviationEPI
Formation1991;33 years ago (1991)
Type Think tank
Headquarters Washington, D.C., United States
Parent organization
 Berman and Company
Revenue (2013)
$2,347,584 [1]
Expenses (2013)$2,131,002 [1]
Website epionline.org

The Employment Policies Institute is a fiscally conservative, non-profit American think tank that conducts and publishes research on employment issues, particularly aimed towards reducing the minimum wage. It was established in 1991 by Richard Berman, [2] [3] and it has been described as "a nonprofit research group that studies issues of entry-level employment." [4]

Contents

Employment Policies Institute does not have its own employees or office, but rather its staff work for Berman and Company, which is a public affairs firm owned by Richard Berman, who lobbies for the restaurant, hotel, alcoholic beverage and tobacco industries. [3] [5] [6] The charity evaluator Charity Navigator has issued a donor advisory concerning The Employment Policies Institute. [7]

Employment Policies Institute should not be confused with the older, similarly named Economic Policy Institute, which is a liberal think tank advocating for low to moderate-income families in the United States.


Issues

The Employment Policies Institute has released a number of studies [8] [9] that look at the economic effects of policies (like the minimum wage, health care mandates, and employment tax credits) on low-wage labor markets. It also regularly analyzes job market data in the United States [10] [11] Typically, studies are contracted by university economists and published under its name. [12]

In 2009, The Employment Policies Institute launched a campaign, Defeat The Debt, focusing on the national debt. [13]

Minimum wage

The Employment Policies Institute argues that increases to the minimum wage also increase unemployment among groups of workers like teens and less-educated and unskilled workers. [14] Economists have varied views on the impact of minimum wage laws.

It weighed in when David Card and Alan Krueger concluded that a 1992 minimum wage hike in New Jersey did not decrease employment in the state. Card and Krueger surveyed fast food employers in New Jersey before and after an April 1992 increase in the state minimum wage (from $4.25 to $5.05 per hour) and found a slight increase in employment. [15] Critics of the analysis, including The Employment Policies Institute, [16] noted that because Card and Krueger's research was based on informal headcounts acquired through telephone surveys, it could not be easily replicated. [17] Subsequent analysis of these restaurants' payroll data records found that employment actually decreased by 4.6 percent after the minimum wage hike, [18] and The Employment Policies Institute's findings were later verified by independent economists. [18] This result would mean that the total amount of wages paid to minimum wage employees in the fast food industry in New Jersey increased 13.4 percent as a result of the increase in the minimum wage (employment declined 4.6 percent, but the minimum wage increased 18.8 percent, for a total change in wages paid of 13.4 percent).

In 2000, Card and Krueger redid their study using a data set from the Bureau of Labor Statistics and reproduced their earlier conclusions. [19] They also showed that Neumark and Wascher's results were due to a non-random biased sample of restaurants.

In the time since the Card–Krueger study was released, many economists have tried to look at the effects of minimum wage increases on employment prospects. A 2006 review by Neumark and Wascher of over 100 studies on the minimum wage concluded that the general consensus view agreed that wage increases hurt employment opportunities for youths. [20]

In 2014 they took out billboards in San Francisco telling workers they will be replaced by iPads if they ask for a living wage. [21]

Staff and Management

Michael Saltsman has been identified on a number of occasions as The Employment Policies Institute research director. [22] Samantha Summers is the nonprofits communications director. [23]

Campaigns

National debt

Defeat The Debt, is a project of The Employment Policies Institute that is focused on the national debt and was launched towards the end of 2009.

See also

Related Research Articles

A minimum wage is the lowest remuneration that employers can legally pay their employees—the price floor below which employees may not sell their labor. Most countries had introduced minimum wage legislation by the end of the 20th century. Because minimum wages increase the cost of labor, companies often try to avoid minimum wage laws by using gig workers, by moving labor to locations with lower or nonexistent minimum wages, or by automating job functions. Minimum wage policies can vary significantly between countries or even within a country, with different regions, sectors, or age groups having their own minimum wage rates. These variations are often influenced by factors such as the cost of living, regional economic conditions, and industry-specific factors.

<span class="mw-page-title-main">Living wage</span> Minimum income to meet a workers basic needs

A living wage is defined as the minimum income necessary for a worker to meet their basic needs. This is not the same as a subsistence wage, which refers to a biological minimum, or a solidarity wage, which refers to a minimum wage tracking labor productivity. Needs are defined to include food, housing, and other essential needs such as clothing. The goal of a living wage is to allow a worker to afford a basic but decent standard of living through employment without government subsidies. Due to the flexible nature of the term "needs", there is not one universally accepted measure of what a living wage is and as such it varies by location and household type. A related concept is that of a family wage – one sufficient to not only support oneself, but also to raise a family.

Berman and Company is a Washington, D.C. based public affairs and non-profit management firm founded by lawyer and former lobbyist Richard Berman. In addition to its public relations clients, Berman and Company runs several industry-funded non-profit organizations such as the Center for Consumer Freedom, the Center for Union Facts, and the Employment Policies Institute. The non-profits have worked on issues including obesity, health care, food safety, labor law, alcohol, and government regulation. The firm is known for campaigns that include aggressive advertising, opposition research, and online communications.

Richard B. Berman is an American lawyer, public relations executive, and former lobbyist. Through his public affairs firm, Berman and Company, he ran several industry-funded, non-profit organizations such as the Center for Consumer Freedom, the Center for Union Facts, and the Employment Policies Institute.

<span class="mw-page-title-main">David Card</span> Canadian economist (b. 1956)

David Edward Card is a Canadian-American labour economist and the Class of 1950 Professor of Economics at the University of California, Berkeley, where he has been since 1997. He was awarded half of the 2021 Nobel Memorial Prize in Economic Sciences "for his empirical contributions to labour economics", with Joshua Angrist and Guido Imbens jointly awarded the other half.

The Center for Economic and Policy Research (CEPR) is an American think tank that specializes in economic policy. Based in Washington, D.C. CEPR was co-founded by economists Dean Baker and Mark Weisbrot in 1999.

<span class="mw-page-title-main">Alan Krueger</span> American economist (1960–2019)

Alan Bennett Krueger was an American economist who was the James Madison Professor of Political Economy at Princeton University and Research Associate at the National Bureau of Economic Research. He served as Assistant Secretary of the Treasury for Economic Policy, nominated by President Barack Obama, from May 2009 to October 2010, when he returned to Princeton. He was nominated in 2011 by Obama as chair of the White House Council of Economic Advisers, and served in that office from November 2011 to August 2013.

<span class="mw-page-title-main">Minimum wage in the United States</span>

In the United States, the minimum wage is set by U.S. labor law and a range of state and local laws. The first federal minimum wage was instituted in the National Industrial Recovery Act of 1933, signed into law by President Franklin D. Roosevelt, but later found to be unconstitutional. In 1938, the Fair Labor Standards Act established it at 25¢ an hour. Its purchasing power peaked in 1968, at $1.60 In 2009, it was increased to $7.25 per hour, and has not been increased since.

David Neumark is an American economist and a Chancellor's Professor of Economics at the University of California, Irvine, where he also directs the Economic Self-Sufficiency Policy Research Institute.

The Oregon Center for Public Policy (OCPP) is an American economic research organization that conducts research and analysis of budget, tax, and economics issues to support policies that improve opportunities for all Oregonians. It supplies lawmakers with information "on issues affecting low- and moderate-income Oregonians".

<span class="mw-page-title-main">Wage theft</span> Denial of wages or employee benefits rightfully owed to an employee

Wage theft is the failing to pay wages or provide employee benefits owed to an employee by contract or law. It can be conducted by employers in various ways, among them failing to pay overtime; violating minimum-wage laws; the misclassification of employees as independent contractors; illegal deductions in pay; forcing employees to work "off the clock", not paying annual leave or holiday entitlements, or simply not paying an employee at all.

Alan Manning is a British economist and professor of economics at the London School of Economics.

<span class="mw-page-title-main">Fight for $15</span> Political movement in the United States

The Fight for $15 is an American political movement advocating for the minimum wage to be raised to USD$15 per hour. The federal minimum wage was last set at $7.25 per hour in 2009. The movement has involved strikes by child care, home healthcare, airport, gas station, convenience store, and fast food workers for increased wages and the right to form a labor union. The "Fight for $15" movement started in 2012, in response to workers' inability to cover their costs on such a low salary, as well as the stressful work conditions of many of the service jobs which pay the minimum wage.

Job creation and unemployment are affected by factors such as aggregate demand, global competition, education, automation, and demographics. These factors can affect the number of workers, the duration of unemployment, and wage rates.

William Louis Wascher is an American economist and the deputy director of the Division of Research and Statistics in the Federal Reserve Board of Governors.

<span class="mw-page-title-main">Stephen Machin</span>

Stephen Jonathan Machin is a British economist and professor of economics at the London School of Economics (LSE). Moreover, he is currently director of the Centre for Economic Performance (CEP) and is a fellow of the British Academy, the Society of Labor Economists and the European Economic Association. His current research interests include labour market inequality, the economics of education, and the economics of crime.

McKinley L. Blackburn is a U.S.-American economist and currently the James A. Morris Professor of Economics at the University of South Carolina. His research interests include labour economics, econometrics, and economic demography.

Francis Kramarz is a French economist who works as Professor at the École Nationale de la Statistique et de l'Administration Économique (ENSAE), where he has been directing the Center for Research in Economics and Statistics (CREST). He is one of the leading labour economists in France.

On the 1st May 2014 Seattle's Mayor Ed Murray announced plans to increase Seattle's minimum wage to $15 per hour incrementally over the next few years. Seattle was the first big city in the United States to raise its minimum wage to $15 after the rise of the "Fight for 15 movement". This policy decision resulted in Seattle having the highest minimum wage of any major city in the United States. Once Seattle raised its minimum wage many other major cities around the country also took action to increase the pay of low wage workers. There has been much debate over the effects the increases to the minimum wage have had on employment and overall economic conditions in Seattle. To determine the impacts of the policy a number of studies have been conducted; the most notable being research by the University of Washington and the University of California, Berkeley.

Eric Baird French is the Montague Burton Professor of Industrial Relations and Labour Economics at the University of Cambridge. He is also a Co-Director at the ESRC Centre for the Microeconomic Analysis of Public Policy, a Fellow at the Institute for Fiscal Studies and a Fellow at the Centre for Economic Policy Research. His research interests include: econometrics, labour and health economics.

References

  1. 1 2 "Employment Policies Institute Foundation" (PDF). Foundation Center. 20 November 2014. Retrieved 26 April 2017.
  2. ↑ "About The Employment Policies Institute". Employment Policies Institute. Archived from the original on 2010-09-22. Retrieved 2010-08-23.
  3. 1 2 Lipton, Eric (February 9, 2014). "Fight Over Minimum Wage Illustrates Web of Industry Ties". The New York Times. Retrieved 2018-11-25.
  4. ↑ Whitaker, Barbara (June 9, 2007). "Ample Jobs, but Youths Are Choosy". New York Times.
  5. ↑ Graves, Lisa (2013-11-13). "Corporate America's new scam: Industry P.R. firm poses as think tank!". Salon. Retrieved 2018-11-25.
  6. ↑ Mark Drajem, Brian Wingfield (November 1, 2012). "Union Busting by Profiting From Non-Profit May Breach IRS". Bloomberg.com. Retrieved 2018-11-25.
  7. ↑ "Employment Policies Institute Foundation | Rating by Charity Navigator".
  8. ↑ "Millions Decide to Go Without Health Insurance Coverage". St. Petersburg Times. July 4, 2009.
  9. ↑ "Economists Say Hike in Teen Unemployment Rate Related to Minimum Wage Increase". Inland Valley Daily Bulletin. March 5, 2010.
  10. ↑ Li, Shan (June 29, 2010). "Summer Job Market Cold for Teens". Los Angeles Times.
  11. ↑ Clabaugh, Jeff (July 7, 2010). "Summer jobs for teens down 38 percent". Portland Business Journal.
  12. ↑ "Think Tanks". Truman State University. Retrieved August 24, 2010.
  13. ↑ "Group Launches Campaign to Raise Awareness About Soaring National Debt". Fox News. September 2, 2009. Archived from the original on September 5, 2009.
  14. ↑ "Seniors Pushing Young Adults Out of the Workforce". Forbes. February 24, 2010.
  15. ↑ Minimum wage#Card and Krueger
  16. ↑ "Policy Wonks Go to Battle Over Minimum Wage". Christian Science Monitor. January 26, 1996.
  17. ↑ "Myth and Measurement: The New Economics of the Minimum Wage". The Cato Journal Book Review. Retrieved August 24, 2010.
  18. 1 2 Neumark, David; Wascher, William (2000). "Minimum Wages and Employment: A Case Study of the Fast-Food Industry in New Jersey and Pennsylvania: Comment". American Economic Review . 90 (5): 1362–1396. doi:10.1257/aer.90.5.1362.
  19. ↑ Card, David; Krueger, Alan B. (2000). "Minimum Wages And Employment: A Case Study Of The Fast-Food Industry In New Jersey And Pennsylvania: Reply". American Economic Review. 90 (5): 1397–1420. doi:10.1257/aer.90.5.1397. S2CID   1140202.
  20. ↑ Neumark, David; Wascher, William (November 2006). "Minimum Wages and Employment: A Review of Evidence from the New Minimum Wage Research". NBER Working Paper No. 12663. doi: 10.3386/w12663 .
  21. ↑ "New San Francisco billboard warns workers they'll be replaced by iPads if they demand a fair wage". Pando. 2014-07-17. Retrieved 2020-12-12.
  22. ↑ "Industries, unions fund nonprofits' studies to aid lobbying".
  23. ↑ "Commentary: No longer the season for seasonal workeers? | HeraldNet.com". HeraldNet.com. 2018-12-02. Retrieved 2018-12-02.
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