WASHINGTON (CNN) — The director of the non-partisan Congressional Budget Office is defending the agency’s analysis that suggests a mixed outlook for raising minimum wage.
The report found that if the minimum wage is increased to $10.10, 900-thousand Americans could be lifted out of poverty.
But the report added that 500-thousand jobs could be cut from the economy.
During a Christian Science Monitor breakfast for reporters, Congressional Budget Office Director Douglas Elmendorf said his office stands by its report.
“I don’t want to respond directly to what the CEA has said, we try to talk about our analysis, let other people talk about theirs. But I want to be clear that our analysis of the effects of an increase in the minimum wage is completely consistent with the latest thinking in the economics profession. We did an exhaustive review of the literature in this area, up through reports that were released last month, very large number of studies as you know, they reach a range of conclusions, and the studies all have strengths and weaknesses. And in the long methodological appendix to our report, we talk about some of the characteristics of studies that made them more or less compelling in our view. But a balanced reading of the set of research studies in this area led us to conclude that an increase in the minimum wage would probably have a small negative effect on employment, but there was substantial uncertainty around that estimate as we reported,” Elmendorf said.