In a survey published by Scioto Analysis this afternoon, economists in Ohio called into question the current tiered minimum wage system that allows for employer to pay lower wages to workers with disabilities.
Ohio Representatives Brigid Kelly and Dontavius Jarrells have put forth a bill to eliminate the current lower minimum wage for persons with disabilities. This lower wage threshold was originally put in place to encourage employment of people with disabilities. Advocates for its abolition argue the lower minimum wage has not yielded the results originally intended.
A majority of respondents to the Economic Experts Panel survey conducted last week said abolishing the lower minimum wage would reduce poverty. Some who agreed did so with the qualification that the overall poverty impact would be modest. Among those skeptical of a poverty reduction, economists cited the potential unemployment impact of a higher minimum wage and the small scale of the policy.
A majority of respondents also said the policy would not likely have negative human capital ramifications for people with disabilities. Economists who believed this would not hurt human capital development said that the current policy has not been shown to improve human capital for workers. Those who were uncertain said that employment loss could hinder human capital development for workers.
The Ohio Economic Experts Panel is a panel of over 40 Ohio Economists from over 30 Ohio higher educational institutions conducted by Scioto Analysis. The goal of the Ohio Economic Experts Panel is to promote better policy outcomes by providing policymakers, policy influencers, and the public with the informed opinions of Ohio’s leading economists.