On January 1, 2024, the minimum wage increased from coast to coast. Indeed, 22 states and more than 40 cities and counties experienced wage increases in 2024 — most of them approaching $15. More states will follow with minimum wage increases later in the year. Undoubtedly, this is mainly the result of underpaid workers organizing and fighting for a decent living wage over the past decade, but is a minimum wage enough? Moreover, where are the increases in minimum wage taking place? A look at the map shows that the South still trails behind. Could this be due to racism in the labor market? In the exclusive interview with Truthout that follows, progressive economist Jeannette Wicks-Lim shares her research findings and insights on the politics and economics of increasing minimum wages. Wicks-Lim is a research professor at the Political Economy Research Institute (PERI) at the University of Massachusetts Amherst and specializes in labor economics with an emphasis on the low-wage labor market.

C. J. Polychroniou: The federal minimum wage is still $7.25, but higher minimum wages went into effect in early January in 22 states, while three more (Florida, Nevada and Oregon) will increase their minimum wages later in 2024. How many and what sort of workers are going to be affected by these wage increases, and how significant are these minimum wage hikes in improving the overall standard of living for low-wage workers?

Jeannette Wicks-Lim: First, to your question about how many and what sort of workers will benefit from these minimum wage increases: An excellent resource for understanding the basic facts of who will benefit from these minimum wage increases is the Economic Policy Institute.

There are two basic types of raises that result from these increases — mandated and ripple-effect raises. Mandated raises are the raises that get workers up to the new, higher minimum wage level. Ripple-effect raises are raises that employers may choose to give workers who are earning a little more than the minimum wage — often these are workers with more experience than the entry-level workers who are more likely to earn minimum wage rates. Employers may do this so that the workers with more experience continue to earn more than entry-level workers after the minimum wage goes up. Overall, about 10 million workers — including both types of raises — will receive wage increases. This represents about 15 percent of the workforces in the states implementing minimum wage hikes. So, the impact — in terms of the share of affected workers — is substantial.

Due primarily to occupational segregation, women are over-represented in low-paying jobs, so they tend to receive a disproportionate share of the raises. Low-wage jobs are particularly concentrated in food services, for example, particularly fast-food restaurants. Workers in other service industries, such as home care aides and child care workers, are well represented among those whose wages rise with minimum wage hikes.

Black, Indigenous, and other workers of color also tend to be overrepresented among the workers who receive raises from minimum wage hikes when looking within the states adopting minimum wage hikes. However, it’s important to note that a majority of Black Americans do not reside in the states raising their minimum wage so that, overall, such workers are underrepresented among pool of beneficiaries from minimum wage........

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