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<br /> <br />The Effects of a $15 Minimum Wage by 2019 in Santa Clara County and San Jose 30 <br /> <br />Table 6. Cumulative impact estimates for major industries in San Jose by 2019 <br /> Percent of eligible <br />workers <br />Percent of eligible <br />workers getting a <br />raise <br />Percent of industry <br />getting a raise <br />All Sectors <br />Agriculture, Forestry, Fishing, Hunting, and Mining 0.2 0.3 <br />Construction 6.0 6.5 33.3 <br />Manufacturing 16.5 6.1 11.5 <br />Wholesale Trade 4.6 3.2 21.2 <br />Retail Trade 12.7 19.1 46.8 <br />Transportation, Warehousing, and Utilities 2.8 2.8 31.0 <br />Information 3.1 0.9 9.5 <br />Finance, Insurance, Real Estate, and Rental and Leasing 4.8 3.1 20.1 <br />Professional, Scientific, and Management 11.9 2.7 7.2 <br />Administrative and Waste Management Services 9.0 14.7 50.7 <br />Educational Services 1.9 1.6 25.9 <br />Health Services 8.5 5.5 20.4 <br />Social Assistance 1.7 2.4 45.4 <br />Arts, Entertainment, Recreation, and Accommodation 2.8 4.5 49.2 <br />Food Services 8.4 21.0 77.8 <br />Other Services 3.1 4.7 47.9 <br />Public Administration 2.0 0.7 10.7 <br />Total 100.0 100.0 <br />By Sector <br />Private, For-Profit 90.0 93.8 32.4 <br />Private, Non-Profit 6.0 4.6 23.6 <br />Public 4.0 1.6 12.6 <br />Total 100.0 100.0 <br />Source: Authors’ analysis of ACS, OES, and QCEW data. See Appendix A2 part B for details. <br />Note: Blank value for “Percent of Industry That is Getting a Raise” indicates insufficient sample size for that category. <br /> <br />Changes in a firm’s operating costs due to a minimum wage increase are determined by the <br />following factors: the share of workers receiving wage increases, the average size of the wage <br />increases, and the labor share of operating costs within the firm. As we saw in Table 6, in most <br />industries only a minority of workers in San Jose will receive a wage increase under Scenario A. <br />Furthermore, among workers that do receive an increase, not everyone will receive the full <br />increase (because many of the affected workers already earn more than the current minimum). <br />Specifically, we estimate that the total wages of all affected workers will increase by 15.3 percent <br />in San Jose. However, affected workers’ wages represent only 8.3 percent of all workers’ wages <br />in San Jose. As a result, total wages in San Jose will increase by 1.3 percent. <br />Economic research suggests that some of the increased labor costs that businesses face as a <br />result of a higher minimum wage can be offset through lower turnover. In our calculations below, <br />8.A. - Page 44