Minimum wage laws aren’t just for workers with lowest wages

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An extraordinary shift in wages paid to American workers took place from 2000 to 2012, a change that holds powerful lessons about the minimum wage, government policy and unions. The lowest-paid workers — those making less than $20,000 a year — saw their average pay rise by more than the rate of inflation. There were nearly 61 million workers in this group in 2012, and they averaged $8,255 in wages annually. Compared with the year 2000, that was a real increase of $95, or 1.2 percent. That’s not much, but it’s better than what happened to workers just above them, those earning $20,000 to $40,000. Their 2012 average wage slipped a tad, down $104, to $29,420, from 2000. Many factors are at work in this shift, but one appears crucial: minimum wage laws.
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An extraordinary shift in wages paid to American workers took place from 2000 to 2012, a change that holds powerful lessons about the minimum wage, government policy and unions. The lowest-paid workers — those making less than $20,000 a year — saw their average pay rise by more than the rate of inflation. There were nearly 61 million workers in this group in 2012, and they averaged $8,255 in wages annually. Compared with the year 2000, that was a real increase of $95, or 1.2 percent. That’s not much, but it’s better than what happened to workers just above them, those earning $20,000 to $40,000. Their 2012 average wage slipped a tad, down $104, to $29,420, from 2000. Many factors are at work in this shift, but one appears crucial: minimum wage laws.

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