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<br /> <br />The Effects of a $15 Minimum Wage by 2019 in Santa Clara County and San Jose 72 <br /> <br />ENDNOTES <br /> <br />1 Portions of this report draw from Reich et al. 2016. <br /> <br />2 The April 2016 non-seasonally adjusted unemployment rate for San Jose reported by California <br />EDD was 4.1 percent. We do not include this statistic here because it is not seasonally adjusted. <br />3 See, for example, the report on inequality from the California Budget and Policy Center: <br />http://calbudgetcenter.org/wp-content/uploads/Inequality-and-Economic-Security-in-Silicon-Valley-05.25.2016.pdf <br /> <br />4 However, Aaronson, Agarwal and French (2012), Table A-3, report a positive earnings effect for <br />adults and nonetheless find no detectable effect on employment. <br />5 Neumark, Salas and Wascher (2014), the best-known researchers who find negative effects, <br />report a 0.06 minimum wage employment elasticity for restaurants, very close to the findings in <br />Allegretto et al. (2015). <br />6 The study was prepared for the Los Angeles City Council; see Reich, Jacobs, Bernhardt and Perry <br />(2015). <br />7 The capital-labor substitution elasticity is not likely to be higher or lower at higher minimum <br />wage rates. <br />8 Constant dollar values are calculated using the average annual change for the past ten years of <br />the San Francisco-Oakland-San Jose Consumer Price Index for Urban Wage Earners and Clerical <br />Workers (CPI-W). <br />9 One exception is child care assistance, which does have a maximum income threshold that, <br />once exceeded, results in the immediate loss of benefits. However, since there is a substantial <br />waiting list for child care assistance benefits, any affected workers who lose eligibility will be <br />replaced by lower-wage workers not currently receiving benefits. Workers who are no longer <br />eligible for Medi-Cal will be eligible for subsidized health care through Covered CA. While most <br />families will come out well ahead financially, the change in costs for specific families will depend <br />on income and health care utilization. <br />10 This analysis is based on data gathered before the full implementation of the Affordable Care <br />Act. <br />11 This analysis is based on data gathered before the full implementation of the Affordable Care <br />Act. <br /> <br />8.A. - Page 86