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Shapiro calls for Senate to act on minimum wage effort

An economic analysis by a Harrisburg-based research center has found significant numbers of Pennsylvanians living near the New York and New Jersey borders crossing state lines for employment.

The study by the Keystone Research Center points at substantial disparities in minimum wage as the reason for the work migration.

The two industry sectors most notably impacted in this way are retail and leisure and hospitality.

Minimum wage in Pennsylvania follows the federal rate at $7.25 an hour. New York is at $14.20 and New Jersey sits at $14.13 and both are slated to move to $15 per hour and then be attached to an index with inflation.

“I made it a priority that we pass raising the minimum wage,” Gov. Josh Shapiro told the Times Observer on Tuesday during his first stop in Warren County as governor. “I’d like to see us go to $15 an hour. Most of the private sector is already there, and some state lawmakers just need to catch up with that.”

The Keystone Research Center’s executive director, Stephen Herzenberg, said that the employment shift to NY and NJ shows workers “behaving quite sensibly.”

“Pennsylvania workers are crossing the border to get a living-wage job; meanwhile, fewer New York workers are likely coming to Pennsylvania to take a poverty-wage job,” he added.

“Pennsylvania low-wage employers, meanwhile, can’t find workers or fill vacancies because workers are crossing the border or staying home. Border area Pennsylvania employers desperately need a substantial Pennsylvania minimum wage increase so that they can attract more workers and create additional jobs.”

“So that Pennsylvania workers can support their families and sustain local businesses through increased consumer buying power, and so that Pennsylvania low-wage employers can attract and retain more workers and compete for employees with neighboring states, Pennsylvania needs to substantially raise its minimum wage now,” said Keystone Research Center Senior Research Analyst and co-author Claire Kovach.

“There’s bipartisan consensus to get this done,” Shapiro said. “The sponsor of the bill in the state Senate is a Republican from Erie.”

Last month, the Democratically-controlled House passed a bill that would raise the minimum wage to $15 by 2026.

State Representative Kathy Rapp opposed the provision, stating on the House floor that family-owned businesses in Forest County cannot afford an increase in the minimum wage.”

The ball is now in the state Senate’s court.

“What we need now is a commitment from the Republican leadership in the Senate just to bring it up for a vote,” Shapiro stressed.

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