This restored the purchasing power lost since the 1988 increase. Many economists have called for a minimum wage set at no lower that one-half the average manufacturing wage. Working women are more likely to earn minimum wage. Many minimum wage earners are so poor that they qualify for welfare payments and food stamps. The state has calculated that Proposition 210's wage hike was likely to move 100,000 working poor away from welfare dependency.
Opponents claim that raising the minimum wage causes job losses among the lowest paid workers.
However, reputable economists have found virtually no employment effects of past minimum wage hikes.