Employment Policies Institute
Encyclopedia
The Employment Policies Institute (EPI) is a fiscally conservative non-profit think tank
that conducts research on employment issues like minimum wage
and health care
. EPI was established in 1991 and has been described as "a nonprofit research group that studies issues of entry-level employment." In 2009, EPI became engaged in an education campaign, Defeat The Debt
, on the national debt
.
The institute operates out of the offices of Berman & Co., a Washington, D.C., public relations organization which lobbies on behalf of the restaurant, hotel, alcoholic beverage and tobacco industries. Because of this, and the fact that it shares executives with Berman & Co., it has been described as a front group created for the purpose of astroturfing
.
, health care
mandates, and employment tax credits
) on low-wage labor markets. EPI also regularly analyzes job market data in the United States Typically, studies are contracted by university economist
s and published under EPI's name.
EPI weighed in when Princeton University
professors David Card
and Alan Krueger concluded that a 1992 minimum wage hike in New Jersey
did not decrease employment in the state. Card and Krueger surveyed fast food employers in New Jersey before and after an April 1992 increase in the state minimum wage (from $4.25 to $5.05 per hour) and found a slight increase in employment. Critics of the analysis, including EPI, noted that because Card and Krueger's research was based on informal headcounts acquired through telephone surveys, it could not be easily replicated. Subsequent analysis of these restaurants' payroll data records found that employment actually decreased by 4.6 percent after the minimum wage hike, and EPI’s findings were later verified by independent economists. This result would mean that the total amount of wages paid to minimum wage employees in the fast food industry in New Jersey increased 13.4 percent as a result of the increase in the minimum wage (employment declined 4.6 percent, but the minimum wage increased 18.8 percent, for a total change in wages paid of 13.4 percent).
In the time since the Card-Krueger study was released, many economists have tried to look at the effects of minimum wage increases on employment prospects. A 2006 review of over 100 studies on the minimum wage concluded that the general consensus view agreed that wage increases hurt employment opportunities for youths.
Think tank
A think tank is an organization that conducts research and engages in advocacy in areas such as social policy, political strategy, economics, military, and technology issues. Most think tanks are non-profit organizations, which some countries such as the United States and Canada provide with tax...
that conducts research on employment issues like minimum wage
Minimum wage
A minimum wage is the lowest hourly, daily or monthly remuneration that employers may legally pay to workers. Equivalently, it is the lowest wage at which workers may sell their labour. Although minimum wage laws are in effect in a great many jurisdictions, there are differences of opinion about...
and health care
Health care in the United States
Health care in the United States is provided by many separate legal entities. Health care facilities are largely owned and operated by the private sector...
. EPI was established in 1991 and has been described as "a nonprofit research group that studies issues of entry-level employment." In 2009, EPI became engaged in an education campaign, Defeat The Debt
Defeat The Debt
Defeat The Debt is a project of the Employment Policies Institute that is focused on the national debt and was launched towards the end of 2009. According to the group's website, "Defeat The Debt is dedicated to educating Americans about the size, scope, and consequences of our rapidly escalating...
, on the national debt
United States public debt
The United States public debt is the money borrowed by the federal government of the United States at any one time through the issue of securities by the Treasury and other federal government agencies...
.
The institute operates out of the offices of Berman & Co., a Washington, D.C., public relations organization which lobbies on behalf of the restaurant, hotel, alcoholic beverage and tobacco industries. Because of this, and the fact that it shares executives with Berman & Co., it has been described as a front group created for the purpose of astroturfing
Astroturfing
Astroturfing is a form of advocacy in support of a political, organizational, or corporate agenda, designed to give the appearance of a "grassroots" movement. The goal of such campaigns is to disguise the efforts of a political and/or commercial entity as an independent public reaction to some...
.
Issues
EPI has released a number of studies that look at the economic effects of policies (like the minimum wageMinimum wage
A minimum wage is the lowest hourly, daily or monthly remuneration that employers may legally pay to workers. Equivalently, it is the lowest wage at which workers may sell their labour. Although minimum wage laws are in effect in a great many jurisdictions, there are differences of opinion about...
, health care
Health care reform debate in the United States
The health care reform debate in the United States has been a political issue for many years, focusing upon increasing coverage, decreasing the cost and social burden of healthcare, insurance reform, and the philosophy of its provision, funding, and government involvement...
mandates, and employment tax credits
Earned income tax credit
The United States federal earned income tax credit or earned income credit is a refundable tax credit primarily for individuals and families who have low to moderate earned income. Greater tax credit is given to those who also have qualifying children...
) on low-wage labor markets. EPI also regularly analyzes job market data in the United States Typically, studies are contracted by university economist
Economist
An economist is a professional in the social science discipline of economics. The individual may also study, develop, and apply theories and concepts from economics and write about economic policy...
s and published under EPI's name.
Minimum wage
EPI argues that increases to the minimum wage also increase unemployment among groups of workers like teens and less-educated and unskilled workers. Economists have varied views on the impact of minimum wage laws.EPI weighed in when Princeton University
Princeton University
Princeton University is a private research university located in Princeton, New Jersey, United States. The school is one of the eight universities of the Ivy League, and is one of the nine Colonial Colleges founded before the American Revolution....
professors David Card
David Card
David Edward Card is a Canadian labour economist and professor at the University of California, Berkeley.Card earned his B.A. degree from Queen's University in 1978 and his Ph.D. degree in Economics in 1983 from Princeton University....
and Alan Krueger concluded that a 1992 minimum wage hike in New Jersey
New Jersey
New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware...
did not decrease employment in the state. Card and Krueger surveyed fast food employers in New Jersey before and after an April 1992 increase in the state minimum wage (from $4.25 to $5.05 per hour) and found a slight increase in employment. Critics of the analysis, including EPI, noted that because Card and Krueger's research was based on informal headcounts acquired through telephone surveys, it could not be easily replicated. Subsequent analysis of these restaurants' payroll data records found that employment actually decreased by 4.6 percent after the minimum wage hike, and EPI’s findings were later verified by independent economists. This result would mean that the total amount of wages paid to minimum wage employees in the fast food industry in New Jersey increased 13.4 percent as a result of the increase in the minimum wage (employment declined 4.6 percent, but the minimum wage increased 18.8 percent, for a total change in wages paid of 13.4 percent).
In the time since the Card-Krueger study was released, many economists have tried to look at the effects of minimum wage increases on employment prospects. A 2006 review of over 100 studies on the minimum wage concluded that the general consensus view agreed that wage increases hurt employment opportunities for youths.