The Underground Economy and the Minimum Wage

The Los Angeles City Council is debating today whether to increase the city’s minimum wage to $15 an hour by the year 2020 -- considerably higher than either the state or federal requirement. We commonly think of people making the minimum wage as the lowest paid workers; it is the MINIMUM wage, after all. But one study suggests that a third of all workers in Los Angeles actually make less than the minimum wage. How can that be?