Summary

California’s minimum wage, set to rise from $8 to $9 in July 2014, could increase further under State Senate Bill 935. The bill proposes raising the wage to $11 in 2015, then by $1 each year until reaching $13 in 2017, with future increases tied to inflation.

This health analysis finds that raising the minimum wage to $13 by 2017 would greatly improve the health and well-being of Californians, especially for an estimated 7.5 million lower-income residents. Higher incomes would reduce rates of chronic disease, hunger, obesity, smoking, and mental health issues, and prevent hundreds of premature deaths annually.

Findings

• Family income is one of the strongest predictors of health. People living below the poverty line are over four times more likely to report poor health than those earning three times the poverty level.
• Low income impacts health through limited access to health care, nutritious food, safe neighborhoods, stable housing, and increased chronic stress.
• Nearly one-third of food-insecure families report skipping meals or reducing portions.
• Children in low-income families face multiple physical and emotional risks, including substandard housing, family turmoil, and community violence.
• Long-term exposure to poverty worsens health outcomes over time.

Minimum wage laws were originally intended to support healthy living. However, over the past few decades, wages have not kept pace with the cost of living. In 1968, California’s minimum wage of $1.65 would be worth $10.77 today—similar to the $11 minimum wage proposed for 2015.

Increasing the minimum wage to $13 would:

• Raise incomes for families in the lowest income bracket.
• Improve birth outcomes, child development, and long-term health.
• Reduce poverty, hunger, and exposure to unsafe housing and neighborhoods.
• Increase access to health care and insurance.
• Improve school readiness and achievement. For example, young children in higher-income families are 2.6 times more likely to be read to regularly, and teens in poverty are almost twice as likely to miss multiple school days.
• Lower smoking rates. Adults in poverty are 50% more likely to smoke.
• Increase physical activity. Adults in poverty are half as likely to meet recommended exercise levels; teens in poverty are 2.5 times more likely to be overweight or obese.
• Reduce mental health challenges. Adults in poverty are over twice as likely to experience serious psychological distress.
• Prevent an estimated 389 premature deaths each year. On average, people living above the poverty line live more than five years longer than those below it.

The connection between income and health is cyclical—poor health can also limit employment and earnings. Raising California’s minimum wage to $13, as proposed in SB 935, would significantly improve health and well-being for millions of Californians.