Page 1

Executive Summary
1his is the trst in a series of reports oommissioned by Aotion Now and 3tand up!
Chioago to examine the orisis of low wages faoing Amerioan workers and the impaot
this has on our oommunities and the eoonomy. 3inoe the 0reat Reoession, the dis-
appearanoe of middle olass jobs has aooelerated, and the bulk of new jobs oreated
have been low wage jobs. 1his report looks speoitoally at low wage workers in Chi-
oago's retail and restaurant industries, examining the impaot of a wage inorease
on the workers, their families, their oommunities, the oompanies where they are
employed, and eoonomio reoovery as a whole.
Current debate amongst polioy makers in washington oenters upon the so-oalled
¨tsoal oliff" and the impaot of spending outs vs. revenue inoreases. ¬owever, this
debate fails to take into aooount the role of the private seotor in oontributing to
eoonomio growth and prosperity. using the retail and restaurant industry in down-
town Chioago as a oase study, our analysis oenters upon how the private seotor
oan oreate good, middle olass jobs and strengthen the eoonomy by paying workers
higher wages.
ln this report, we make the oase for inoreasing the wages of retail and restaurant
workers in downtown Chioago to a minimum of $15 per hour, whioh our analysis
demonstrates would lift thousands of workers out of poverty, oreate nearly 1,000
new jobs in downtown Chioago, and strengthen the oommunities hardest hit by the
0reat Reoession. 0ur analysis of tnanoial data from the tfty largest publio retail
and restaurant employers in downtown Chioago shows not only that these oompa-
nies oan afford to pay their employees a minimum of $15 per hour, but also that
higher wages will lead to inoreased revenues, and have the potetential to transform
the retail and restaurant industry from a poverty wage industry into a oreator of
good, middle olass jobs and a driver for eoonomio growth.
3peoitoally, this report demonstrates that:
1. Low wage jobs made up 21% of all the jobs lost during the recession,
yet have represented 58% of the entire job recovery. Amerioans' fears that
the middle olass is shrinking are well founded: sinoe the reoession, oorporate prof-
its have returned to their pre-reoession levels and above, but job growth has been
fueled by the oreation of mostly low wage jobs.
2. About 57% of all households in Chicago depend solely on income
from low wage jobs. 1he minimum wage, at $8.25 per hour hour in lllinois, has
not kept paoe with the oost of living, with $17.24 per hour the ourrent 3elf-3uf-
toienoy 3tandard for a single parent with one ohild. Chioago's oommunities are
experienoing sooioeoonomio problems that will remain intraotable until wages are
inoreased substantially.
EMBARGOED until 12:01 A.M., Tuesday, December 4, 2012.
Page 2
3. In the years following the end of the recession, the top 1% of the
income distribution captured 93% of all real income growth. 1here is
enough revenue to oreate good jobs and eoonomio reoovery, but it is inoreasingly
oonoentrated at the top.
4. 0owntown emp|oyers can afford a very sìgnìñcant ìncrease ìn wages
paid to their low wage workers. McDonald’s has inoreased protts from $4.3
billion in 2008 to $5.5 billion in 2011. TJX, owner of 11 Maxx and Marshall's, saw
protts rise in the same period from $881 million to $1.5 billion. Chipotle protts
inoreased over that period from $78 million to $215 million. CEOs for downtown
Chicago stores average $8.3 million per year in annual compensation, an hourly
rate of over $4,011. Meanwhile, the oost of raising all low wage workers in retail
and food servioe downtown to $15 per hour is $103 million, a very small peroent-
age of the billions going through the oash registers eaoh year. Lven if employers
were to pass on the entirety of this oost to the oonsumer, it would only raise prioes
by 2.6º, a negligible amount that is unlikely to affeot oonsumer spending patterns
in any signitoant way.
5. An increase in pay for downtown workers would spur about $179 mil-
lion in economic activity in workers’ communities, and for every 25 low
wage workers receiving a raise to $15 per hour, one full time job would
be created. 1here are signitoant benetts to Chioago, and its oommunities, work-
ers and employers, of paying retail and restaurant workers a higher wage. when
low wage workers reoeive a pay inorease, nearly all of the extra earnings go baok
into the eoonomy as oonsumer spending. 0ur analysis also reveals that relatively
small shifts in inequality oould have a signitoant impaot on levels of violent orime
and eduoational outoomes for students.
Recommendations
1. 1he oampaign of the workers 0rganizing Committee of Chioago, known as light
for 15, is demanding a wage inorease for downtown workers to at least $15 per
hour. 0ur analysis demonstrates that this is affordable for employers, and will have
a positive impaot on Chioago's eoonomy, neighborhoods, and retail and restaurant
workers and their families.
2. Retail and restaurant employers in downtown Chioago have an important role to
play in the oity's eoonomio reoovery and the eoonomio development of our oommu-
nities. By negotiating a wage inorease to a minimum of $15 per hour for all work-
ers, these oompanies oan help transform our oity's eoonomy by supporting middle
olass job oreation and sustained eoonomio growth.
Page 3
Introduction
ln light of the national dialogue regarding how to
address the budget detoit, this report examines
private seotor solutions to inorease revenues and
revitalize the diminishing middle olass.
1he 0reat Reoession ended oftoially in mid-2009.
1

As oorporate protts have returned to their pre-re-
oession levels and major u.3. oompanies have
emerged with inoreased produotivity and prottabil-
ity, and with reoord-setting oash reserves, there is
an opportunity for these oompanies to use their
signitoant resouroes to assist millions of working
families aoross the u.3. who oontinue to struggle.
2

while unemployment has been slowly deoreasing,
job growth has been fueled by the oreation of most-
ly low wage jobs. Aooording to a reoent study by the
Loonomio Polioy lnstitute oomparing types of jobs
lost in the reoession to those added in the reoovery,
a substantial number of middle-inoome jobs have
been replaoed by low wage work.
3

1he leading growth seotors for employment in the
oity of Chioago are the restaurant and retail indus-
tries, these seotors are also leaders in low wage
jobs. 1his report highlights original researoh that
illustrates the orisis of low wages for workers in
these industries oompared to the prottability of
their employers, and outlines a private seotor solu-
tion to this orisis in whioh employers in downtown
Chioago negotiate a wage inorease to a minimum
of $15 per hour for their workers as a means of
growing and strengthening our oity's eoonomy and
middle olass.
Increased income disparity
lnoome inequality, whioh has been inoreasing
in the u.3. sinoe the 1970s, has oontinued to in-
orease sinoe the end of the reoession.
4
Uuring the
reoession, loss of inoome and wealth affeoted all
eoonomio groups, with median family wealth in the
u.3. deolining by nearly 40º.
5
¬owever, this loss
of wealth fell disproportionately on middle inoome
and poor families. ln the years following the end of
the reoession, the top 1º of the inoome distribution
oaptured 93º of all real inoome growth, meanwhile,
the poverty rate olimbed steadily over the past four
years,
6
and 2011 marked the highest peroentage
of Amerioans living in poverty sinoe 1965.
7

1he rise of extreme inequality is espeoially evident
in Chioago. Chioago is both one of the wealthiest
oities on the planet and also one of the world's
most important oenters of tnanoe.
8
1he Chioago
area is home to at least eighteen billionaires, thou-
sands of millionaires, and several of the riohest
LlP oodes in the nation.
9
0nly a few miles from
these aftuent plaoes, however, vast numbers of
Chioagoans struggle to meet their families' basio
needs. 3inoe 2008 the poverty rate in Chioago has
inoreased steadily every year, going from 20.6º
in 2008 to 23.7º by 2011. Child poverty has in-
oreased by nearly 20º over the last four years,
from 30.3º in 2008 to 36.1º in 2011.
10

Changes to the low wage workforce
Aooording to a reoent survey of Chioago's work-
foroe, about 57º of all households in Chioago
depend solely on inoome from low wage jobs, up
from 46º in 2001. 1his study reveals that the de-
mographios of the low wage workforoe have been
shifting over the past deoade, with this the work-
foroe beooming older and more eduoated. Contrary
to widespread belief that most low wage workers
are teenagers, about 94º of Chioago's low wage
workforoe is now over the age of 20, and about
57.4º is over the age of 30.
11

A new labor organization, known as the workers
0rganizing Committee of Chioago (w0CC), has
reoently proposed addressing some of Chioago's
most pressing sooial and eoonomio issues by in-
oreasing wages to a minimum of $15 per hour for
all workers in the retail and restaurant industries in
Chioago. 1his report looks at that proposal and as-
sesses the multiplier effeot of the proposed wage
inorease on Chioago oommunities, eoonomy, work-
ers and employers. Uata indioates that higher wag-
es will have a strong postivie impaot on the work-
ers and families of about 18,800 people who work
downtown and about 83,000 people who work in
these industries throughout the oity.
12
¨About 57º of all households in Chioago depend
solely on inoome from low-wage jobs, up from 46º
in 2001"
Page 4
A Crisis of Low Wage Work
The inequality of the recovery
0ne of the most striking traits of the last few years
of eoonomio reoovery is how unequal reoovery has
been. while unemployment has deoreased from its
peak at the end of 2009, a reoent study found that
during the reoession mid-wage oooupations made
up about 60º of all the jobs that were lost. Re-
oovery in medium-wage jobs has been slow: only
about 22º of new jobs oreated are oonsidered
medium-wage jobs. 0n the other hand, low wage
jobs made up 21º of all the jobs lost during the
reoession yet have represented 58º of the entire
job reoovery. ln Chioago, jobs that are oonsidered
low wage now make up about a third of all jobs,
with 31.2º of all jobs oonsidered low wage, oom-
pared to 23.8º in 2001. Many workers who may
have been working a middle-inoome job prior to
the reoession are likely now earning lower wages.
12

Retail & restaurants: high growth industries,
low wage jobs
1he low wage oooupations that grew the most
during the reoovery are retail salesperson and food
preparation oooupations. 1obs in the restaurant
and retail industries now make up about 10º of
all jobs but oomprise about one third of all low-in-
oome jobs. 1obs in these industries are known for
their low wages. ln the Chioago area, the median
wage for a food preparation worker is $9.04 per
hour, while a typioal retail oashier oan expeot to
make about $9.22 per hour.
13
An analysis of all
oooupations in the retail and restaurant seotors in
Chioago reveals that the typioal wage for a down-
town worker in these industries is about $9.80 per
hour.
14

while the above tgures show that some of the re-
tail and restaurant workers in Chioago are making
wages that are slightly higher than the state min-
imum wage (ourrently $8.25 per hour), suoh jobs
are also typioally part-time and offer few benetts.
Aooording to data from the Bureau of Labor 3tatis-
tios (BL3), workers in the fast food industry oan ex-
peot to log about 26 hours per week, department
store workers oan expeot to log about 31 hours per
week.
15
Many part-time workers oan work full-time
hours during peak seasons, however, they remain
-80- 60 -40- 20 02 04 06 08 0
High-wage:
1% net gain
Mid-wage:
38% net loss
Low-wage:
37% net gain
Percentage of Jobs lost
during the recession
Percentage of Jobs
gained in recovery
.
ligure 1: 1ob growth by wage level sinoe end of reoession.
3ouroe: NLLP Analysis of Current Population 3urvey
exoluded from the benett paokages that might be
offered to full-time workers.
Lrratio soheduling is another major ohallenge for re-
tail and restaurant workers. A reoent survey of retail
workers in New ¥ork City, whioh reteots nationwide
trends, found that only 17º of those surveyed had
a set sohedule, while the majority of the retail work-
ers only knew their soheduling a week in advanoe or
less.
16
1his unprediotability oan make it diftoult for
workers to meet family oommitments, get a seoond
job and/or arrange for ohild oare. Lrratio soheduling
also means that workers in these industries do not
have steady inoomes, whioh makes it diftoult to plan
ahead, save money or pay bills on time.
Impact of low wages on families
Aooording to Census Bureau data, in 2011 the per-
oentage of families living in poverty in Chioago was
23.7º.
17
¬owever, the oftoial poverty threshold oal-
oulation is often oritioized for not measuring ability
to meet basio oosts of living, and failing to aooount
for the great variation in oosts--suoh as housing or
transportation--from region to region.
18
Many house-
holds that are not oftoially oonsidered ¨poor" using
the traditional measure of poverty nonetheless de-
monstrably laok enough inoome to oover essential
expenses suoh as food, housing, transportation,
healthoare, or ohild oare.
¨1obs in the restaurant and retail industries now
make up about 10º of all jobs but oomprise about
one third of all low-inoome jobs"
Page 5
Alternative models have been developed in
order to determine what the oosts of living are
for a partioular region of the oountry. 0ne of
the most prominent models is the 3elf-3uft-
oienoy 3tandard, whioh was developed in the
mid-1990s by the Center for women's wel-
fare at the university of washington.
19
The
3elf-3uftoienoy 3tandard detnes the amount
of inoome neoessary in order to meet basio
needs without publio assistanoe or private
oharitable assistanoe. 1he 3elf-3uftoienoy
3tandard is a basio family budget models
that does not take into aooount other oosts,
suoh as payments towards debt or putting
money in savings aooount.
20

under the 3elf-3uftoienoy 3tandard, a one
adult, one ohild household would need an
annual inoome of about $35,859, or the
equivalent of about $17.24 per hour for a full-
time worker. 1his is more than double the
amount a full time minimum-wage worker
would make, more than double the estimat-
ed earnings of an average retail or restaurant
worker in downtown Chioago, and $20,000
more than the oftoial poverty threshold.
22

when the aotual oost of living is not oovered
by wages paid, the employer is effeotively
shifting the aotual oost of their produots and
servioes to the employee and to the publio. ln-
dividuals reoeiving low wages pay through ex-
treme hardship and loss of sooial mobility as
a oonsequenoe of not being able to improve
their oiroumstanoes (e.g. by getting an edu-
oation, saving money, paying bills on time).
1he publio pays when it is foroed to provide
either publio or private assistanoe through
programs suoh as 3upplemental Nutrition
Assistanoe Program, publio housing, or pri-
vate oharity. Beoause poverty and inequality
oontribute signitoantly to other issues suoh
as orime and poor health, sooiety also pays
the oost of low wages when paying for polioe
proteotion, publio hospitals, and the loss of
produotive oitizens.
A Private Sector
Solution to Chicago’s
Middle Class
Revenues of Chicago retail and restaurant industries
Chioago is one of the wealthiest oities in the world and one
of the most important oenters of tnanoe. lf the Chioago re-
gion were a oountry, it would have a 0UP higher than that
of 3witzerland, Poland or Belgium, and 0UP per oapita that
would rank among wealthiest plaoes on earth.
23
Although
there is olearly no laok of wealth in Chioago, many families
have to struggle to meet basio needs, and many oommuni-
ties in the oity faoe ohronioally high levels of unemployment,
poverty and violent orime.
Retail and restaurants are among the oity's most luorative
seotors. 1hese two seotors produoed an estimated $14.2
billion in revenue in 2011.
24
1he downtown area, whioh is
extremely dense and only takes up a small fraotion of the
geographio area of Chioago, brings in about $4 billion of
that. Uowntown Chioago is unquestionably the eoonomio
hub of the oity, a plaoe where hundreds of thousands of peo-
ple oome to work and visit every day. Pedestrian oounts oan
exoeed more than 50,000 on portions of Miohigan Avenue
and 30,000 on 3tate 3treet.
25
1he large pool of shoppers
from within and beyond the oity makes the downtown area
an attraotive plaoe for all sorts of retailers. ¬igh-inoome vis-
itors to the Magnitoent Mile draw oompanies like Maoy's,
Burberry, All 3aints, Lddie Bauer and others to invest in
large, tagship-style stores along Miohigan Avenue.
we estimate that the additional money required to bring re-
tail and restaurant workers downtown up to $15 per hour
to be 2.6º of revenues, a oost dwarfed by the protts that
retail oorporations are drawing out of the downtown area.
26

Notably, this is a oonservative estimate, it does not assume
reduoed workforoe turnover resulting in any savings or pro-
duotivity gains. 1he remainder of this seotion desoribes how
the retail oorporations have more than enough wealth to in-
orease workers' wages.
Page 6
Corporate wealth
Uuring the reoession, large oompanies aoross all
seotors of oorporate Amerioa engaged in oost out-
ting and tnanoing strategies that allowed them to
rebound and reoover at a faster paoe than other
parts of the eoonomy, espeoially working families.
An analysis of disolosures by more than 50 publioly
traded retail and restaurant oompanies with oper-
ations in the downtown area shows that:
· 0ver 82% were proñtab|e ìn the |ast year,
· 0ver 70% stayed proñtab|e through the re-
cessìon,
· Uombìned operatìng ìncomes were $35.5
bì||ìon,
· Uombìned proñts were $21.7 bì||ìon,
· 0ìvìdends paìd to ìnvestors tota|ed $13.9
billion.
27

By these measures, large retail and restaurant
oompanies are faring quite well, in part by not
sharing their suooess with their workforoe. Some
typical examples of how major companies in the
sector are doing since 2008:
· Macy's Inc., among the largest retail ohains in
the oountry, operates about 842 stores nationwide
under the Maoy's and Bloomingdale brands and
employs about 171,000 people. while the oompa-
ny reported major losses in 2008, that did not stop
Maoy's from spending more than $29 million in
oompensation for a few top exeoutives and paying
over $200 million in dividends to its investors that
same year. 3inoe 2009 Maoy's operating margin,
revenue and protts have inoreased every year.
28

Like many large oompanies prospering as the rest
of the eoonomy struggles, Maoy's has amassed an
unpreoedented level of oash on hand - $2.8 bil-
lion at the end of 2011.
29
Maoy's has two large
stores in downtown Chioago (3tate 3treet and wa-
ter 1ower Plaoe), whioh the CL0 reoently indioated
were among the highest grossing looations in the
nation.
30

· 1JX Uompanìes, the parent oompany of 1.1. Maxx
and Marshalls, is the largest disoount retail depart-
ment store operator in the oountry, with 22,000
looations and 168,000 employees. 11X revenues
and protts have steadily inoreased eaoh year sinoe
2008, with the highest jump from 2008 to 2009
at the height of the reoession. ln 2011, 11X prof-
its reaohed nearly $1.5 billion, nearly doubling the
2008 level, and 11X paid over $287 million in div-
idends to stookholders, almost triple the amount
that it paid out in 2009.
31
11X has three stores in
downtown Chioago.
· Uhìpot|e Mexìcan Urì|| has grown into a major fast
food presenoe in the past deoade by opening new
looations at a rate of over 100 per year.
32
3inoe the
reoession began, Chipotle's protts have inoreased
every year, nearly tripling from $78 million in 2008
to about $215 million in 2011. Revenues have
almost doubled from $1.3 billion to $2.3 billion.
while this resulted primarily from an inorease in
looations, sales at oomparable restaurants within
the ohain inoreased an average of 7.2º per year.
ln 2011 oomparable sales inoreased by more than
11º to $1.85 million per restaurant, the equiva-
lent of about $74,000 per worker.
33
Chipotle has
nine looations downtown.
· Mc0ona|d's, the quintessential fast food ohain,
is also among the world's most prottable. ln 2011,
the oompany had an operating margin that exoeed-
Pevenues and proñts - ma[or retaì| companìes, 2008 and 2011
Revenue Proñt Cash on Hand
Company 2008 2011 2008 2011 End of 2011
Maoy's $24,892 $26,405 -$4,775 $1,256 $2,827
11X Companies $19,000 $23,191 $881 $1,496 $1,507
Chipotle Mexioan 0rill $1,332 $2,270 $78 $215 $401
MoUonald's $23,522 $27,006 $4,313 $5,503 $2,336
ln M||||ons of uSl. Souroe. Seour|r|es ano Fxohange 0omm|ss|on h||ngs - www.seo.gov´eogar.shrm|
Page 7
ed more than 30º, or about $5.5 billion in prott.
MoUonald's restaurants typioally have annual rev-
enues of about $2.5 to $2.8 million. About 80º of
restaurants are franohised, with MoUonald's Corp.
making their money from franohise fees and, be-
oause the oompany owns muoh of its own real es-
tate, rent payments based on revenue for the indi-
vidual restaurant.
34
MoUonald's has about twenty
looations in downtown Chioago.
Wealth of CEOs
while the hourly wages of most employees at large
retail and restaurant oompanies do not allow them
to live without hardship or the help of publio as-
sistanoe, these same oompanies provide their top
exeoutives with lavish oompensation paokages.
Analysis of more than 50 publicly traded retail
and restaurant companies that have operations
in the downtown Chicago area found that the av-
erage CEO compensation package in 2011 was
about $8.3 million.
35

lf broken down as an hourly wage, this would
amount to $4,011 per hour (assuming they work a
forty hour week), about 409 times more than what
these oompanies pay their typioal worker. Also,
many exeoutives still reoeive lavish pay when the
oompanies they run are doing poorly, even reoeiv-
ing large bonuses and other ¨performanoe-based"
payments.
CEO stories
· 5ears Po|dìngs UL0 Louìs 0'Ambrosìo took
oharge of the oompany in lebruary 2011. 1hat
same year, the oompany olosed more than one hun-
dred stores and laid off hundreds of employees,
while U'Ambrosio reoeived oompensation totaling
nearly $10 million. 1his tgure inoluded $852,037
in perks, of whioh $793,422 paid for U'Ambrosio
to oommute baok and forth from Philadelphia to
Chioago in a private jet.
36
· Uhìpot|e co-UL0s 5teve L||s and Monty Moran
made a oombined $38.2 million last year.
37
This is
a 39º inorease from 2010 and a 189º inorease
- almost triple - from when the reoession began
in 2008. ln the meantime, over 90º of Chipotle's
workforoe is part-time, and preparation/serving
workers in the Chioago area make around $9 per
hour.
38
1his means Llls and Moran eaoh make in
one hour roughly what one of their Chioago-area
employees makes in a year.
· ln 2010, Urban 0utñtters UL0 U|en 5enk re-
oeived total oompensation of $29.9 million. lour
oonseoutive quarters of losses followed, and in ear-
ly 2012 3enk jumped ship to run a luxury jeweler.
Uuring 2011, CFO Eric Artz and President Stephen
Murray eaoh reoeived relooation paokages exoeed-
ing $100,000 upon starting with the oompany, plus
signing bonuses of $300,000 and $425,000, re-
speotively. Murray is also no longer with urban 0ut-
ttters, having stayed only one year.
39

· The outgoing CEO of McDonalds Corp., James
Skinner, retired on 1une 30, 2012. 3kinner will re-
oeive a oash payment of more than $9.7 million on
Ueoember 31st and oash performanoe inoentives
of $10.9 million plus other payments, for a total of
almost $21 million to a former exeoutive no longer
doing any work for the oompany.
40
3kinner will now
reoeive about $500,000 per year as Board Chair-
man for walgreens lno.
41

8QSUHFHGHQWHGSURÀWDELOLW\
Considering that retailers and restaurants in down-
town Chioago have not just weathered the reoession
but are in faot, in many oases, experienoing unpreo-
edented prottability, it is olear that these oompa-
nies oan afford to pay their workers a minimum
wage of $15 per hour without saoritoing revenues
or protts. 0ur analysis shows that paying the $15
per hour rate would oost only $103 million a year,
a small fraotion of what these oompanies pay their
top exeoutives and a negligible amount oompared
to prott tgures.
Increased wages lead to higher sales and
FRUSRUDWHSURÀWV
¬igher wages for workers in the retail and restau-
rant seotors will also likely lead to higher sales for
oompanies. Aooording to a reoent report by Uemos,
higher-paid workers tend to drive sales, as opposed
to oosts, also, when low wage workers reoeive a pay
inorease, nearly all of the extra earnings go baok
into the eoonomy as oonsumer spending.
42
we
expeot that retailers and restaurants in downtown
Chioago will not only be able to absorb the oost of
inoreased wages easily, but will also experienoe
higher revenues and stronger performanoe as a re-
sult of paying workers the $15 per hour rate.
Page 8
Positive Impacts of a Raise
for Workers
Multiplier effect: more money to
communities
Raises for low wage workers do not only benett the
workforoe direotly reoeiving higher wages, many
benetts may be felt oommunity-wide. lf retail and
restaurant employers oitywide were to raise wages
suoh that all workers in these seotors were earning
at least $15 per hour, we estimate that this would
put more than a half-billion more dollars into Chi-
oago neighborhoods. lf only the downtown retail
distriots inoreased the wages of their workforoe
to $15 per hour, an estimated $103 million more
would go to Chioago neighborhoods. 1hese esti-
mates are based on wage and employment tgures
from the Bureau of Labor 3tatistios that provide
insight into what this workforoe makes ourrently.
43

when workers earn more money, they spend these
extra earnings in their oommunities. lor the oity-
wide retail and restaurant workforoe, this likely
means every neighborhood in the oity. ln the oase
of downtown retail and restaurant workers, the
additional money would go to poor and middle in-
oome neighborhoods throughout the oity that have
large numbers of residents that are employed in
downtown retail and restaurants.
We estimate the additional wages to downtown
workers would spur about $179 million in eco-
nomic activity in workers’ communities. 1his in-
oludes direot spending by workers reoeiving more
in wages ($103 million) plus the ¨multiplier effeot"
of looal businesses benetting from worker expendi-
tures and also re-spending looally.
44
1he spending
would spur job oreation, alleviate sooioeoonomio
problems assooiated with extreme inequality, and,
perhaps most importantly, have a direot positive
impaot on the ohildren of thousands of workers.
Job creation
New looal spending will oreate jobs in Chioago
oommunities. working families are most likely
to spend inoreased inoome on basio needs like
food and shelter, ohild oare and health oare. 1his
effeotively ohannels that inoome into jobs provid-
ing those goods and servioes, often in a looalized
fashion.
45
1his stands in oontrast to the riohest
individuals, who are oomparatively more likely to
engage in speoulation, off-shoring of wealth, or tax
avoidanoe, i.e. tnanoial strategies that benett an
individual but not the oommunity.
we estimate that for every 25 low wage workers in
the retail and restaurant seotors getting a raise to
$15 per hour, one full-time job oould be oreated.
Citywide, raises to $15 per hour for all low wage
workers in these seotors oould oreate olose to
4,000 new jobs. Raises for the retail and restau-
rant workers in the Loop and the Magnitoent Mile
alone oould oreate almost 750 new jobs.
46

ln making our estimate, we have drawn on the
aoademio literature on the eoonomio impaot of
state and federal minimum wage inoreases. 1his
literature has shown oonsistently that there is no
job loss assooiated with modest inoreases in mini-
mum wages, and that furthermore, wage inoreases
at prottable stores will inorease demand and job
oreation.
47
we have adjusted our estimate to take
into aooount the higher prott margins of downtown
retail stores and the higher than minimum wage
inorease that we are proposing. ¬igh prott margins
suggest that aotivity at these stores that serve lo-
oal markets will not be oonstrained by the oosts of
a wage inorease to $15 per hour, but rather by the
level of demand.
48
¨Additional wages to downtown workers
would spur about $179 million in eoonomio
aotivity in workers' oommunities"
¨lor every 25 low-wage workers in the re-
tail and restaurant seotors getting a raise
to $15 per hour, one full-time job oould
be oreated"
Page 9
Impact on violent crime
Reoent inoreases in violent orime in Chioago have
garnered media attention nationally and even
globally. 1he homioide rate has inoreased dra-
matioally this year, and by the end of the year the
total number of homioides is expeoted to exoeed
500.
49
0ver the past deoade more than 5,500
people have been murdered, about 1,000 more
people than troops that were killed during in the
lraq war.
50
0bservers wonder how a global oity in
the riohest oountry in the world oan possibly suffer
suoh an epidemio of violenoe.
while root oauses of violent orime are oomplex, in-
come ìnequa|ìty has consìstent|y been ìdentìñed
among the best predictors of violent crime rates.
1his holds true both in oomparing populations and
over time for ohanges in inequality experienoed by
a sooiety. 1he researoh suggests that inoreased
inequality breaks down sooial oohesion between
those with higher and lower inoomes, with a range
of negative oonsequenoes inoluding inoreased vi-
olent orime. lurther, researoh suggests that rela-
tively small shifts in inequality oan have a big im-
paot on levels of violent orime.
51
Low wage workers in the restaurant and retail seo-
tors often live in the neighborhoods of Chioago
most affeoted by violenoe. 1his is partioularly true
for those working in the Loop and the Magnitoent
Mile, who oome to work in retail distriots among
the riohest in North Amerioa from plaoes where
they have to worry about their own safety or the
safety of their ohildren. Raises to the wages these
workers earn should be regarded as one means of
making Chioago neighborhoods safer.
Impact on students and schools
Publio eduoation in Chioago is also in orisis. Many
Chioago Publio 3ohools (CP3) students are strug-
gling to meet benohmarks of the quality eduoation
all students deserve. Many students are struggling
just to tnish sohool at all. Reoently, some eduoa-
tion polioy makers have responded with near-exolu-
sive foous on performanoe measurement through
standardized tests soores and ¨holding teaohers
aooountable" for these soores.
52
1his is the prem-
ise behind CP3's wave of ¨turnarounds" that has
olosed more than 100 sohools in Chioago over the
past deoade but barely moved the needle on stu-
dent aohievement.
53

Lduoational aohievement and outoomes oorrelate
with sooioeoonomio status, espeoially for students
at the bottom end of extreme inoome inequality.
54

Children from poor households are twioe as like-
ly as non-poor ohildren to repeat a grade, get ex-
pelled or suspended, or drop out of high sohool.
55

Researoh has shown that ohildren that live below
the poverty lines are 1.3 times more likely to have
developmental delays and 1.4 times more likely to
have learning disabilities than non-poor ohildren.
1wenty-two peroent of ohildren who have lived in
poverty for a period in their lives do not graduate
from high sohool. 1his rate goes up to 32º when
students spend more than half of their ohildhoods
in poverty. ln oontrast, the dropout rate for stu-
dents that never experienoe poverty is about 6º.
56

1he oftoial ohild poverty rate in Chioago stands
at about 36º, and CP3 estimates that about 87º
of all students oome from households where the
head of the household works low wage jobs.
57

Raising wages for parents will make a real differ-
enoe in how these ohildren perform in sohool. ln-
oreasing the wages of downtown workers has the
potential to direotly impaot olose to 9,760 ohildren
in the oity, while inoreasing the wages of all restau-
rant and retail workers oan have the potential to
impaot more than 50,000 ohildren in Chioago.
Raising wages to reduoe ohild poverty should be
oonsidered an important part of sensible efforts to
improve publio eduoation.
Stronger, safer communities
lorthooming reports in this series will examine the
relationship between wages and eduoation and vi-
olent orime in further detail. ¬igher wages have the
potential to move thousands of workers and their
families out of poverty. Many ohallenges faoing Chi-
oago neighborhoods may be rooted in high levels
of poverty and inequality. Poverty has been shown
to have a strong oorrelation with aoademio perfor-
manoe and sohool dropout rates. lnequality has
been shown to be a strong prediotor for a number
of sooioeoonomio issues, inoluding homioide rates
Page 10
and violent orime. lmproving the wages of workers
who live in the oity's lowest-inoome neighborhoods
has the potential to address some of these issues.
1he workers 0rganizing Committee of Chioago
(w0CC) is a newly formed union of downtown retail
and restaurant workers whose primary demand is
for a minimum wage of $15 per hour. An inorease
to $15 per hour for all employees in the restaurant
and retail seotors in Chioago, starting with those
from the downtown area, would bring enormous
benetts for workers, their families, and their neigh-
borhoods. while the oost for employers would be
negligible oompared to the wealth of downtown re-
tail distriots, it would make a signitoant differenoe
for thousands of restaurant and retail workers
aoross Chioago.
1he rate of $15 per hour is more in line with the
aotual oost of living in Chioago, and raising wages
for retail and restaurant workers to this level would
bring thousands of Chioagoans out of low wage
work and into the middle olass. we reoommend
raising the wages of all retail and restaurant work-
ers in downtown Chioago to a minimum of $15 per
hour, whioh our analysis demonstrates will result in
inoreased eoonomio aotivity in our neighborhoods,
the oreation of thousands of new jobs, and im-
provements in eduoation, and publio safety in our
oommunities.
Page 11
Methodology Appendix
0eñnìng Low Wage
1here is no set, standard detnition of low wages.
we referenoe levels used in reports by several or-
ganizations.
· 1he low wage leoover, ano Crow|ng ln-
equa||r,: wages that are lower than $13.84 per
hour. lor this analysis, NLLP divided all ooou-
pations into thirds (high, mid, and low) based
on median wage.
· 0h|oago´s Crow|ng low wage workforoe:
wages that are lower than $12 per hour, based
on a ¨modest and oonservative" assessment
of oost of living (¨At this wage level, a full-time
worker living by herself will barely be able to
oover life's basio oosts without publio assis-
tanoe. when a worker earning $12 per hour
is supporting family or other household mem-
bers, publio assistanoe programs will likely be
indispensable to household subsistenoe.")
lor the purposes of this report, we tend toward a
detnition of low wage in relation to aotual, looal
oosts of living. we refer sometimes to wages below
$15 per hour as low wage beoause of the relation-
ship to the oost of living in Chioago.
Corporate Wealth and Wealth of CEOs
ligures in the Corporate wealth were oaloulated
by analyzing oorporate tnanoial data from a seleot
group of 50 publioly traded oompanies that have
operations in the Chioago downtown area. 1he data
used oame from eaoh of the oompany's lorm 10-K,
whioh is the annual tnanoial statement that publio
oompanies must tle with the 3eourities Lxohange
Commission. 1he data used was from tsoal years
2008 through 2011.
1he data for CL0 oompensation paokages oame
from eaoh of the oompany's proxy statements,
whioh is an annual report that publio oompanies
must tle with the 3eourities Lxohange Commis-
sion. All the CL0 oompensation tgures were from
l¥ 2011, with the exoeption Burger King ¬oldings,
beoause it has not disolosed CL0 oompensation
tgures sinoe the oompany ohanged its oorporate
struoture in 2010.
1he oompanies that were used for this survey are:
Aberorombie & litoh, Aéropostale, Amerioan La-
gle 0utttters lno., Ann lno., Barnes & Noble lno.,
Bebe 3tores lno., Bed Bath & Beyond lno., Best Buy
Co. lno., Bon 1on 3tores lno., Brinker lnternation-
al lno., Burger King ¬oldings, Caribou Coffee Co.,
Charming 3hoppes lno., Cheeseoake laotory lno.,
Chioo las lno., Chipotle Mexioan 0rill lno., Colleo-
tive Brands lno., Cosi lno., U3w lno., Linstein Noah
Restaurant 0roup lno., 0ap lno., loot Looker lno.,
0ame3top lno., 0uess lno., 1aok ln 1he Box lno.,
1os. A. Bank Clothiers lno., Kenneth Cole Produo-
tions lno., Limited Brands lno., Maoy's lno., Mo-
Uonald's Corp., Men's wearhouse lno., New ¥ork &
Company lno., Nordstrom lno., 0ftoe Uepot lno., 0f-
toe Max lno., Panera Bread Co., Pl Chang's China
Bistro lno., Radio3haok Co., 3aks lno., 3ally Beau-
ty ¬oldings, 3ears ¬oldings, 3taples lno., 1arget
Corp., 1he wendy's Co., 1iffany Co., 11X lno., urban
0utttters lno., wet 3eal lno., williams and 3onoma
lno., ¥um Brands lno.
Downtown Retail and Restaurant Revenue
lt is estimated that the retail and restaurant indus-
tries bring in about $4 billion in annual revenue to
the downtown area.
Restaurant revenue
Restaurant revenue was oaloulated by using data
from taxers oolleoted in the Metropolitan Pier and
Lxposition Authority (MPLA) taxing distriot, whioh
enoompasses an area of oentral Chioago bordered
by Uiversey Ave on the north, Ashland on the west,
and the 3tevenson Lxpressway on the south PLA
tax oolleotion data. 1he MPLA tax oolleots a 1º tax
on food prepared for immediate oonsumption, al-
oohol and soft-drinks. ln 2011, the average busi-
ness looated within the MPLA taxing distriot had a
gross revenue of $1.3 million. Business data from
the oity indioated that there are over 1,000 eating
and drinking plaoes subjeot to this tax in the Loop
and the Magnitoent Mile area, whioh indioates
that the restaurant industry brought in about $1.4
billion in 2011.
Retail revenue
ln 2011, an eoonomio study of the Loop estimated
that the retail industry in the Loop brought in about
Page 12
$2.2 billion in revenue. 1his number was oaloulat-
ed by multiplying retail square footage by the aver-
age sales per square foot rate in the area, whioh
was about $600. ¬owever, the number was oalou-
lated using all the existing retail toor spaoe in the
Loop, inoluding retail spaoe that was not oooupied
at the time of study. we have adjust the estimate
to $1.5 billion to reteot a more aoourate revenue
for the distriot in 2011 by removing toor spaoe that
was not being used at the time of the study, and by
adjusting Maoy's sales per square foot to the low
end of typioal sales in the Loop, whioh is $400 per
square foot.
1he revenue estimate for the Magnitoent Mile re-
tail is $1.1 billion and was taken from the Miohigan
Avenue vision 2012 report, published by the 0reat-
er North Miohigan Avenue Assooiation.
Numbers of Workers and Average Wages
1he number of workers and average wages are es-
timated by seotor (retail and restaurant) for down-
town and oitywide. 1he souroe wage data for the
estimates is the Bureau of Labor 3tatistios: over-
all employment and wage levels by oooupation in
the Chioago region, and wage levels for eaoh oo-
oupation within eaoh industry, both of whioh are
in 0ooupational Lmployment 3tatistios (0L3) data
series, May 2011: http://www.bls.gov/oes/
1o estimate the downtown workforoe, employment
from 0L3 data was allooated based on Bureau of
Census LlP Code Business Patterns, whioh oon-
tains looalized oounts of business establishments
by industry and by workforoe size, for downtown
LlP oodes (60601, 60602, 60603, 60604, 60605
and 60611) and oheoked against estimates of oity-
wide and downtown revenues in these seotors (see
¨Uowntown Retail and Restaurant Revenue" seo-
tion above).
1he direot oost of raising workers from ourrent
wage levels and $15 per hour is oaloulated by mul-
tiplying the downtown workforoe (18,800) times
the average hourly wage ($9.80) times the aver-
age hours per week. 1he average number of hours
range from about 19 to 30 hours per week whioh
means the oost to arrive at $103 to $179 million,
whioh is the equivalent to about 2.6º to 4.5º of
the $4 billion in revenue for the downtown retail
and restaurant industries. while BL3 data sug-
gests that estimate number of hours to be on the
higher end of this range, but aneodotal evidenoe
from retail and restaurant workers in Chioago indi-
oates that average number of hours per week likely
falls on the lower on the end this range.
Multiplier and Job Creation
1he multiplier and job oreation estimates in this
report generally follow methodology from the Loo-
nomio Polioy lnstitute (LPl). LPl uses numbers
from:
Landi, Mark. 2011. ¨At Last, the u.3. Begins a
3erious lisoal Uebate." Moody's Analytios' Uis-
mal 3oientist website.
hrrp.´´www.eoonom,.oom´o|sma|´arr|o|e_
free.asp7o|o=193972&r|o=l0351001-l571-
43lF-4136-B2l622Fl6l44
3peoitoally, aooording to LPl, ¨Averaging the stim-
ulus multipliers of the Larned lnoome 1ax Credit
(within Reoovery Aot parameters) and Making work
Pay (the Reoovery Aot's refundable tax oredit for
working individuals and families) gives a reason-
able tsoal stimulus multiplier for the spending in-
orease due to the inorease in oompensation of low
wage workers. 1his value is 1.2, whioh means that
a $1 inorease in oompensation to low wage work-
ers leads to a $1.20 inorease in eoonomio aotivi-
ty." LPl then offsets these numbers to aooount for
oost shift for employers. we use the multiplier of
0.74, whioh LPl oaloulates to represent 20º pass-
through.
LPl uses two tgures to estimate job oreation from
inoreased eoonomio aotivity: $115,000 for a full-
time equivalent job (measuring work hours inolu-
sive of both new jobs and inoreased hours for those
who already have jobs), and $127,000 for a payroll
job (measuring only wholly new jobs). LPl uses an
average of estimates with eaoh number. lor this
report, job oreation estimates under these soenar-
ios are: 600-900 downtown payroll jobs, 663-693
downtown full-time equivalent jobs, 3,380-5,060
oitywide payroll jobs, 3,732-4,582 oitywide full-
time equivalent jobs.
Page 13
Endnotes
1. National Bureau of Loonomio Researoh. Business Cyole Uating Committee. 3eptember 20, 2010. http://
www.nber.org/oyoles/sept2010.html
2. 1hurm, 3oott. ¨lor Big Companies, Life is 0ood." 1he wall 3treet 1ournal. April 09, 2012. Aooessed 0otober
29, 201. Aooessed 0otober 29, 2012. http://online.wsj.oom/artiole/3B10001424052702303815404577331
660464739018.html
3. National Lmployment Law Projeot. ¨1he Low wage Reoovery and 0rowing lnequality." August 2012. Aooessed
November 2012. http://nelp.3odn.net/8ee4a46a37o86939o0_qjm6bkhe0.pdf

4. 0rganization for Loonomio Uevelopment and Co-0peration and Uevelopment 3tatLxtraots. 0lNl Coeftoient
Uata for the u.3. from the mid-1970s and late-2000s. Uata Lxtraoted on 0otober 18, 2012.http://www.oeod.
org/statistios/
5. ¨weathering the 0reat Reoession: Uid ¬igh-Poverty Neighborhoods lare worse?" 1he Pew Charitable 1rust.
0otober 2012. Aooessed November 21, 2012. http://www.pewstates.org/uploadedliles/PC3_Assets/2012/
Pew_urban_neighborhoods_report.pdf
Brioker, 1esse, et al. ¨Changes in u.3. lamily linanoes from 2007 to 2010: Lvidenoe from the 3urvey of Con-
sumer linanoes." lederal Reserve Bulletin. 1une 2012, vol. 98, No 2.
6. 3aez, Lmmanuel. ¨3triking it Rioher: 1he Lvolution of 1op lnoomes in the united 3tates." Maroh 2, 2012.
Aooessed on 0otober 23, 2012. http://elsa.berkeley.edu/-saez/saez-u3topinoomes-2010.pdf
7. ¥en, ¬ope. ¨u.3. Poverty on traok to rise to highest sinoe 1960s." ¥ahoo! News. 1uly 23, 2012. Aooessed No-
vember 12, 2012. http://news.yahoo.oom/us-poverty-traok-rise-highest-sinoe-1960s-112946547--tnanoe.html
8. CNBC.oom. 1he world's Most Competitive linanoial Centers. 3eptember 22, 2012. Aooessed 0otober 23,
2012. http://www.onbo.oom/id/32970596/1he_world_s_Most_Competitive_linanoial_Centers?slide=1

9. lorbes Media LLC. world's Riohest People. List of lllinois Billionaires. Aooessed November 8, 2012. http://
www.forbes.oom/lists/2006/10/lllinois_Rank_1.html
Allen, Ashley, Molntyre, Uouglas. ¨1he Amerioan Cities with the Most Millionaires." 24/7 wall 3t. 1uly 13,2011.
Aooessed on November 8, 2012. http://247wallst.oom/2011/07/13/the-amerioan-oities-with-the-most-million-
aires/3/
10. u.3. Census Bureau. Amerioan Community 3urvey. Poverty Rates from 1-¥ear Lstimates: 2008-2011. Ao-
oessed 0otober 29, 2012

11. Uoussard, Maro. ¨Chioago's 0rowing Low wage workforoe: A Protle of lalling Labor Market lortunes." wom-
en Lmployed, Aotion Now lnstitute. 3eptember, 2012. Aooessed 0otober 2012. http://www.womenemployed.
org/sites/default/tles/resouroes/Chioagoº27sº200rowingº20Low wageº20workforoeº20llNAL.pdf
12. National Lmployment Law Projeot. ¨1he Low wage Reoovery and 0rowing lnequality." 1he report identites
jobs mid-wage jobs as those that pay from $13.84 and $21.13 per hour. Aooessed 0otober 2012.
http://nelp.3odn.net/8ee4a46a37o86939o0_qjm6bkhe0.pdf
13. Bureau of Labor 3tatistios. wage 3tatistios for 0ooupations in the Chioago-1oliet-Naperville, lL Metropolitan
Uivision. Retrieved August 15, 2012.

14. Analysis of Bureau of Labor 3tatistios data. 3ee methodology appendix.

15. Bureau of Labor 3tatistios. Uata oolleoted August 2012.
Page 14
16. Luoe, 3tephanie, lujita Naoki. ¨Uisoounted 1obs: ¬ow Retailers 3ell workers 3hort." City university of New
¥ork and Retail Aotion Projeot. 2012. Aooessed November 2012. http://retailaotionprojeot.org/wp-oontent/
uploads/2012/01/llNAL_RAP.pdf

17. Amerioan Community 3urvey. 1 ¥ear Lstimates for 2008 through 2011. u.3. Census Bureau. Aooessed 0oto-
ber 29, 2012. Note: 1he u.3. Census uses the federal poverty thresholds to determine who lives in poverty.

18. 0reenberg, Mark. ¨lt's 1ime for a Better Poverty Measure." Center for Amerioan Progress. August 25, 2009.
Aooessed November 2012. http://www.amerioanprogress.org/issues/poverty/report/2009/08/25/6582/its-
time-for-a-better-poverty-measure/
19. ligures for the lllinois 3elf-3uftoienoy 3tandard are oaloulated by the ¬eartland Allianoe for ¬uman Needs
and ¬uman Rights.

20. 3ooial lmpaot Researoh Center. ¨0etting By & 0etting Ahead: the 2009 lllinois 3elf-3uftoienoy 3tandard."
3eptember, 2009. Aooessed 0otober 2012. http://www.heartlandallianoe.org/whatwedo/advooaoy/reports/
getting-by-getting-ahead-il-self-suftoienoy-tnal.pdf

21. Caloulated on 3ooial lmpaot Researoh Center lllinois 3elf-3uftoienoy Caloulator. Aooessed November 2012.
http://www.iloaloulator.org/oaloulator.ofm.

22. u.3. Census Bureau. ¨Poverty 1hresholds for 2011 by 3ize of lamily and Number of Related Children under
18 ¥ears." ln 2011, the poverty threshold for a one adult, one ohild household was $15,504.

23. llorida, Riohard. ¨lf u.3. Cities were Countries, ¬ow would 1hey Rank?" 1he Atlantio. 1uly 21, 2011. Ao-
oessed on 0otober 23, 2012. http://www.theatlantio.oom/business/arohive/2011/07/if-us-oities-were-ooun-
tries-how-would-they-rank/241977/

24. lllinois Uepartment of Revenue. Caloulated by using l¥ 2011 tax data oolleoted on: 0eneral Merohandise,
Urinking and Lating Plaoes, Apparel, lurniture & ¬.¬. & Radio, Lumber, Bldg, ¬ardware, lood. Aooessed 0oto-
ber 2012. https://www.revenue.state.il.us/app/kob/index.jsp

25. 0reater North Miohigan Avenue. ¨Miohigan Avenue vision 2012." 1997. Aooessed 0otober 2012. http://
www.gnmaa.oom/planning_advooaoy/vision_2012/
Chioago Loop Allianoe. ¨2011 Loop Loonomio 3tudy." lebruary2011. Aooessed 0otober 2012. http://ohi-
oagoloopallianoe.oom/Resouroes/liles/2011_Loop_Loonomio_3tudy_llNAL.pdf

26. Lstimate of the amount required to bring retail and restaurant workers downtown to $15/hr is based
primarily upon Bureau of Labor 3tatistios wage and employment data. More details are inoluded in the ¨More
Money to Communities" seotion of the methodology appendix.

27. Analysis from oompiled tnanoial results of more than 50 oompanies with business aotivities downtown. 3ee
methodology appendix.

28. Maoy's, lno. 2012 lorm 10-k. liled on 1anuary 28, 2012.

29. Maoy's, lno. 2012 lorm 10-k. liled on 1anuary 28, 2012.

30. 0uy, 3andra. ¨Maoy's ohief says Chioago sales suooess will lead to more jobs." Chioago 3un-1imes, 1une
15, 2011. Aooessed November 2011. http://www.suntimes.oom/business/5982225-420/maoys-ohief-says-
ohioago-sales-suooess-will-lead-to-more-jobs.html

31. 11X, lno. 2012 lorm 10-k. liled on 1anuary 28, 2012.

Page 15
32. Note: ln 2000 there were 100 Chipotle looations nationwide. By the end of 2012 it is expeoted that the
numbers of open restaurants will surpass 1,300.

33. Chipotle Mexioan 0rill, lno. 2011 lorm 10-K. liled on Ueoember 31, 2011

34. MoUonald's Corp. 2011 lorm 10-k. liled on Ueoember 31, 2011.

35. Analysis from oaloulating the Compensation paokages of more than 50 oompanies with business aotivities
downtown. 3ee methodology appendix.
36. 3ears Roebuok and Co. 2012 Proxy 3tatement.

37. Chipotle Mexioan 0rill, lno. 2012 Proxy 3tatement. liled on April 09, 2012.

38. Chipotle Mexioan 0rill, lno. 2011 lorm 10-K, Bureau of Labor 3tatistios. wage 3tatistios for 0ooupations in
the Chioago-1oliet-Naperville, lL Metropolitan Uivision. Retrieved August 15, 2012.

39. urban 0utttters, lno. 2012 Proxy 3tatement. liled on April 2, 2012.

40. MoUonald's Corp. 2012 Proxy 3tatement. liled on April 13, 2012.

41. walgreen's, lno. 2011 Proxy 3tatement. liled on November 18, 2011.

42. Reutshlin, Catherine. ¨Retail's ¬idden Potential: ¬ow Raising wages would Benett workers, the lndustry
and the 0verall Loonomy." Uemos, November 19, 2012. http://www.demos.org/sites/default/tles/publioa-
tions/Retails¬iddenPotential_Uemos.pdf
43. Analysis based on Bureau of Labor 3tatistios wage and employment data. 3ee methodology appendix.

44. Analysis using impaot estimate based on Bureau of Labor 3tatistios data and multipliers adapted from Loo-
nomio Polioy lnstitute, ¨1he benetts of raising lllinois' minimum wage." 3ee methodology appendix.

45. 3ee for example Bureau of Labor 3tatistios Consumer Lxpenditure 3urvey 2011 table ¨Çuintiles of inoome
before taxes: 3hares of average annual expenditures and souroes of inoome. Aooessed November 2012. ¨
http://www.bls.gov/oex/2011/share/quintile.pdf

46. Analysis from multipliers and oosts of job oreation from Loonomio Polioy lnstitute. 3ee methodology appen-
dix.

47. ¬all, Uoug, 0able, Mary. ¨1he Benetts of Raising the lllinois Minimum wage." Loonomio Polioy lnsittute.
1anuary 2012. http://www.epi.org/tles/2012/ib321.pdf
48. 3ee methodology appendix.
49. MoClelland, Ldward. ¨0pinion: 1he Ueadliest 0lobal City." NBC Chioago. August 2, 2012. Aooessed 0otober
18, 2012. http://www.nboohioago.oom/blogs/ward-room/1he-Ueadliest-0lobal-City-163874546.html
50. 2011 Murder Analysis Report. Chioago Polioe Uepartment. https://portal.ohioagopolioe.org/portal/page/
portal/ClearPath/News/3tatistioalº20Reports/Murderº20Reports/MA11.pdf
u.3. Uepartment of Uefense. 0peration lraqi lreedom u.3. Casualty 3tatus. November 7, 2012.

51. 1he Lquality 1rust Researoh Uigest: violonoe. ¨lnoome lnequality and violent Crime." 2011. Aooessed on
0otober 17, 2012. http://www.equalitytrust.org.uk/doos/researoh-digest-violent-orime-tnal.pdf
Page 16
Ualy, Martin, wilson, Margo. vasdev, 3hawn. ¨lnoome lnequality and ¬omioide Rates in Canada and the united 3tates."
Canadian 1ournal of Criminology. April 2001, 219-236. Aooessed 0otober 2012. http://psyoh.momaster.oa/dalywilson/
iiahr2001.pdf
Chi ¬sieh, Ching, Pugh. ¨Poverty, lnoome lnequality and violent Crime: A meta-Analysis of Reoent Aggregate Uata 3tud-
ies." Criminal 1ustioe Review, vol 18, Number 2, Autumn 1993.
Rowlingson, Karen. ¨Uoes lnoome lnequality Cause ¬ealth and 3ooial Problems." 1oseph Rowntree loundation. 3ep-
tember, 2011.
52. Baker, Lva L., et al. ¨Problems with the use of 3tudent 1est 3oores to Lvaluate 1eaohers." Loonomio Polioy lnstitute.
August 29, 2010. Note: 1his tendenoy persists even though there is no broad oonsensus from experts showing that test
soores are reliable and valid indioators of teaoher effeotiveness. Aooessed 0otober 2012. http://www.epi.org/publioa-
tion/bp278/.
53. Karp, 3arah. ¨Consortium 3tudy 3ays Little lmprovement in Llementary 3tudents over 1wo Ueoades." Catalyst Chi-
oago. 3eptember 30, 2011. Aooessed on November 2012. http://www.oatalyst-ohioago.org/notebook/2011/09/30/
oonsortium-study-says-little-improvement-in-elementary-students-over-two-deoades
Lutton, Linda, Karp, 3arah, Ramos, Llliott. ¨Mapping 10 ¥ears of 3ohool Closures: A ¬istory of 3ohool Closings in Chi-
oago, 2001 to 2011, and what has Beoome of their Buildings." Chioago Publio Media. Ueoember 7, 2011. Aooessed on
November 2012. http://www.wbez.org/no-sidebar/Chioago-sohool-olosings
54. Ladd, ¬elen l. ¨Lduoation and Poverty: Confronting the Lvidenoe." 3anford 3ohool of Publio Polioy, Uuke university.
November 4, 2011. Aooessed 0otober 2012. http://sanford.duke.edu/researoh/papers/3AN11-01.pdf
55. Brooks-0unn, 1eanne, Uunoan, 0reg 1. ¨1he Lffeots of Poverty on Children." 1he luture of Children. vol. 7
No. 2. 3ummer/lall 1997. Aooessed 0otober 2012. http://www.prinoeton.edu/futureofohildren/publioations/
doos/07_02_03.pdf
56. ¬ernandez, Uonald. ¨Uouble 1eopardy: ¬ow 1hird-0rade Reading 3kills and Poverty lntuenoe ¬igh 3ohool 0radu-
ation." City university of New ¥ork. April, 2011. Aooessed 0otober 2012. http://www.aeof.org/-/media/Pubs/1opios/
Lduoation/0ther/Uouble1eopardy¬ow1hird0radeReading3killsandPovery/Uouble1eopardyReport040511llNAL.pdf
57. Chioago Publio 3ohool. 3tatistios at-a-0lanoe. Aooessed 0otober 18, 2012. http://www.ops.edu/about_ops/at-a-
glanoe/pages/stats_and_faots.aspx