WASHINGTON, Feb. 18 -- U.S. President Barack Obama's plan to raise the minimum wage to 10.10 U.S. dollars per hour would cost 500,000 jobs in 2016, according to a report released by the Congressional Budget Office on Tuesday.

The increased earnings for some workers would be accompanied by reductions in real (inflation-adjusted) income for the people who became jobless because of the minimum-wage increase, for business owners, and for consumers facing higher prices.

The report also found that hiking the minimum wage would raise income for about 16.5 million workers by 31 billion dollars, potentially pulling nearly 1 million people out of poverty.

However, Council of Economic Advisers Chairman Jason Furman wrote in a blog post that CBO's estimates of the impact of raising the minimum wage on employment did not reflect the current consensus view of economists.

"The bulk of academic studies, have concluded that the effects on employment of minimum wage increases in the range now under consideration are likely to be small to nonexistent," he wrote.

Obama signed an executive order formally raising the minimum wage for federal workers last Wednesday. He also pressed the Congress to match the executive order with an equivalent hike to the federal minimum wage.

However, his call faces resistance from Republicans who argue that raising minimum wage would hurt business. Some Democrats have also been reluctant to embrace it.