The State of the minimum wage: Federalism, economic policy, and workers' well-being

Abstract

In this essay, we contribute to the growing national discussion about the future of minimum wage policy and its implications for working class Americans. First, we discuss the politics of the minimum wage in the United States, with special attention to the sizable and rich variation across the fifty American states and the importance of federalism. Second, we examine competing theoretical arguments (and, when available, empirical evidence) about the advantages and the disadvantages of increasing the minimum wage, particularly as it pertains to workers' well-being. Third, as a case study of the potential effects of raising the minimum wage, we present preliminary results from an original empirical analysis that assesses how state minimum wage increases impact the quality of life that working class citizens experience.