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Many drivers for Uber, Lyft, and DoorDash are earning well below minimum wage, even with tips, a new paper finds

In an analysis of 52,370 trips by 1,088 drivers in the Boston, Chicago, Los Angeles, San Francisco Bay, and Seattle metros in January 2022, researchers at the UC Berkeley Labor Center and the Center for Wage and Employment Dynamics found drivers across six ride-hailing and delivery platforms often earned less than the local minimum wage, including with tips, after expenses like gas.

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One map shows how much a $15 minimum wage would be worth in every state

A study from the UC Berkeley Labor Center found that nearly half of families who would see a pay bump rely on at least one such program like SNAP or Medicaid, and $100 billion in taxpayer money goes towards those families. A higher minimum wage would both put more money in families’ pockets, and provide some relief for those programs as those families would rely on them less.

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Joe Biden’s plan to increase the minimum wage to $15 won’t just help workers: A new study finds that lower wages cost taxpayers over $100 billion a year

The study, which comes from the UC Berkeley Labor Center, found that the country’s current low minimum wage costs taxpayers more than $100 billion a year. That’s because nearly half of the working families who would benefit from the pay bump rely on at least one safety net program, such as SNAP or Medicaid.