Recently released University research has found that pushing the minimum wage up to $10 per hour could stimulate economic activity. The study’s findings are in line with Gov. Pat Quinn’s push for a minimum wage increase in the state of Illinois.

The current Illinois minimum wage is $8.25 per hour, which is less than half the average U.S. hourly wage. According to a recent press release from Quinn, a full-time worker at this wage will earn about $17,000 in a year, which is below the federal poverty threshold of $19,790.

Robert Bruno, professor of labor and employment relations and co-author of the study, said increasing the wage from $8.25 to $10 per hour could generate new economic activity.

“If you give hundreds of thousands of people a couple thousand dollars in pay raise and they spend the vast majority of it, that has a positive modest impact on the economy because that money then becomes an expenditure,” he said. “And then it becomes revenue for businesses, which then can make decisions about products and new technology.”

Bruno added that while there wouldn’t necessarily be any new jobs created as a result of the boost in wages, he believes it would help the state of Illinois overall.

“Even if no additional people were to get hired, the people who are working would have more money and they would spend it,” he said. “And if you can reduce the poverty level by almost 1 percent, that rate of economic performance helps the state.”

In a March 20 press release, Quinn praised the company GAP Inc. for deciding to raise its minimum wage to the proposed $10 per hour for all of its U.S. employees.

“Gap Inc. is leading the pack in raising the minimum wage to build an economy that works for everyone,” Quinn said in the press release. “Hardworking men and women in Gap stores all over Illinois will benefit from this increase. Illinois and the rest of the nation should follow Gap’s good example.”

Akua Sarhene, senior in FAA, has worked a few minimum wage-paying jobs and offered a student perspective on how an increase to $10 per hour would impact her.

“It would help even just in the simplest things like buying groceries and textbooks to being able to save and pay off school loans,” she said.

This issue has gained a lot of momentum recently, not only in Illinois, but also at the federal level. Congress is currently preparing to vote on the Fair Minimum Wage Act, which would increase federal minimum wage for employees each year. After two years, the minimum wage would be at $10.10, if the act is passed. 

“There was time when Democrats and Republicans could agree to this without too much drama, and I really hope Illinois would be enlightened,” Bruno said.

Edward can be reached at [email protected].