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LA's minimum wage hike is ambitious, groundbreaking, say economists
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May 20, 2015
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LA's minimum wage hike is ambitious, groundbreaking, say economists
L.A.'s move has never been tried before in a city that size. How the hike plays out could influence policy around the whole nation.
The Los Angeles City Council on Tuesday, May 19, 2015, approved a proposal that calls for raising the city’s minimum wage to $15 an hour by 2020. (File photo shows balloon used during a rally and march to demand the increase to $15.)
The Los Angeles City Council on Tuesday, May 19, 2015, approved a proposal that calls for raising the city’s minimum wage to $15 an hour by 2020. (File photo shows balloon used during a rally and march to demand the increase to $15.)
(
Stock photo by Wesley Pinkham via Flickr Creative Commons
)

L.A.'s move has never been tried before in a city that size. How the hike plays out could influence policy around the whole nation.

An ambitious proposal to hike the minimum wage in Los Angeles is making waves across the nation.

Workers would be earning $15 an hour by 2020 if the City Council approves the plan.

SCPR's Brian Watt explains the political forces that collaborated to push the measure through. 

It also has the entire world of economists on their edge of its seat, says Arindrajit Dube, professor of economics at the University of Massachusetts–Amherst.

Dube says what L.A. is doing is groundbreaking because it has never been tried before in a city that size.

Wages across the board have been stagnant for years – they have not risen as much as they would have under natural circumstances.

Economists have only speculated on what could happen, he says, and this real world adjustment could influence policy around the whole nation.