Living wage study finds modest aggregate cost, concentrated benefits for low‑wage workers

An independent study presented to the board analyzed potential effects if Santa Fe County harmonizes its living wage with the City of Santa Fe's new $17.50 floor. Consultant Riley S. White said the change would be a roughly 13% increase from the current $15.40 baseline but noted that affected workers' average wages are higher and that only a small share of covered jobs (about 7.6%) would be directly affected. In modeled scenarios using standard elasticities, aggregate employment effects were small: roughly 0.6 covered‑job equivalents per 1,000 covered jobs in a baseline case and up to 1.9 per 1,000 under a high‑stress scenario.

White stressed impacts would be concentrated: some small businesses with large shares of low‑paid workers would feel meaningful cost pressure, while many employers already pay above the proposed floor and would see little change. Commissioners discussed border‑community dynamics (Glorietta, Chimayo, Edgewood, the Espanola corridor) and noted considerations such as employer relocation incentives, wage compression and effects on large public employers. Staff said the presentation initiates an ordinance process; if the board wishes to proceed, staff will work on title and summary and begin the public process.