The Effects of Different Minimum Wages in Different States

The latest minimum wage map from the DOL website shows us the following:

Minimum Wage Laws in the States – July 24, 2009

Note: Where Federal and state law have different minimum wage rates, the higher standard applies.

Clickable map of America

Green States with minimum wage rates higher than the Federal Yellow States with no minimum wage law
Blue States with minimum wage rates the same as the Federal Red States with minimum wage rates lower than the Federal
Brown American Samoa has special minimum wage rates

As I outlined recently, minimum wage laws create unemployment if the wage is fixed above the market wage.

Expect those states with minimum wages above the federal level (green) to experience problems with their minimum wage legislation sooner or later. That portion of unemployment which is to be imputed upon minimum wage laws will be significantly higher there. Thus overall unemployment is likely to be sustained at much higher levels there. We may see a noticeable exodus of workers from those green states to some of the red, blue, or yellow states over time.


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3 thoughts on “The Effects of Different Minimum Wages in Different States”

  1. Stefan ought to get in touch with a psychiatrist. He does only publish comments he likes or does not understand. I have written a great number of comments which contradict his ideas in a more subtle manner and he publishes them, which substantiates that he does not know what he is talking about. However, some of his texts are great.

    I will now enjoy your inflation-deflation text.

    best regards

    Flavian

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