California’s progressive policies yield better job growth and wage growth than Republican comparators

UC Berkeley logo_laborcenterA November 2017 report from the Labor Center at University of California Berkeley  examined the “California Policy Model” –  defined as a collection of 51 pieces of legislation and policy implementations enacted in California between 2011 and 2016 – and found that with progressive policies such as minimum wage increases, increased access to health insurance, reduction of carbon emissions and higher taxes on the wealthy, the state showed  superior economic  performance  in comparison to Republican-controlled states and to a simulated version of California without such policies.  According to  “California is Working: The Effects of California’s Public Policy on Jobs and the Economy since 2011“,  the suite of progressive policies resulted in superior total employment growth , superior private sector employment growth, and higher wage growth for low-wage workers from 2014 to 2016. All the while, keeping the state on track to meet its 2020 GHG emissions targets.  The  environmental policies included in the analysis were: starting in 2006, AB 32, which committed the state to lowering its greenhouse gas emissions to 1990 levels by 2020;  regulations under AB 32 in 2012 and 2013, which introduced the state cap and trade program;  SB 350 in 2015 and 2016,  committing the state to greater use of renewable energy and further improvements in energy efficiency ; and SB 32, which raised the emissions reduction goal to 40 percent below 1990 levels by 2030.  The report warns that  enforcement of labour standards and a lack of affordable housing remain as challenges facing the state, and also admits to possible weakness  regarding the second of its two methods of analysis, the synthetic control statistical method.

 

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