Consistent with abundant empirical evidence, there is a strong relationship between education and hourly earnings in Buffalo. More than three of every five workers living in Buffalo without a college degree are estimated to earn below $15/hour, compared to only about one in five workers with a four-year or graduate degree.
Large disparities in the likelihood of earning below $15/hour for different levels of educational attainment work to concentrate individuals with less education into low-wage jobs.
Workers who live in Buffalo and earn below $15 per hour are heavily concentrated in low-income households. The income distribution of low-wage workers in Buffalo is strong evidence against arguments that such workers are disproportionately high school or college students who are either from privileged households or otherwise undeserving of a federal minimum wage increase. Fewer than 6% of sub-$15/hr workers live in households with family income above 150% of area median income (after adjusting for family size).
Note: The household income categories from the preceding graph were defined relative to family-size-adjusted area median income (AMI) using the decision rules in the table below. For more on how to calculate these values, refer to: Weaver, Russell, and Jason Knight. “Advancing Housing Security: An Analysis of Renting, Rent Burden, and Tenant Exploitation in Erie County, NY.” (December 28, 2020) Available at SSRN: https://ssrn.com/abstract=3778025.
Income Category | Definition Relative to Family-Size Adjusted Area Median Income (AMI) |
Extremely Low | Family Income <= 30% AMI |
Very Low | 30% AMI > Family Income <= 50% AMI |
Low | 50% AMI > Family Income <= 80% AMI |
Moderate | 80% AMI > Family Income <= 120% AMI |
Medium | 120% AMI > Family Income <= 150% AMI |
High | 150% AMI > Family Income <= 180% AMI |
Very High | Family Income > 180% AMI |