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Learn more about the minimum wage




Data Source: Current Population Survey Outgoing Rotation Group files from June 2007 to May 2008. Calculations based on the increase from $5.85 an hour to $6.55 an hour, which represents the second step in the federal minimum wage hike that was passed in 2007. The federal minimum wage will go up to $7.25 on July 24, 2009.


The average family income of United States employees who would 'benefit' from the new $6.55 minimum wage is nearly $44,635. The 70 cent bump that went into effect on July 24, 2008, is the second step in a 41% increase in the starting wage.

According to U.S. Census Bureau data, fully 85% of employees in United States whose wages would be increased by the proposed minimum wage hike either live with their parents or another relative, live alone, or have a working spouse. Just 15% are sole earners in families with children, and each of these sole earners has access to supplemental income through the Earned Income Tax Credit.

Regardless of the economic conditions that will be facing the country next summer, the federal minimum wage will rise again next July, making it more difficult for the low-skilled workforce to find a job.

Distribution of Workers Affected by the new $6.55 Minimum Wage

United States 42 % 18 % 25 % 85 % 15 % $ 44,635
Alabama 31 % 23 % 27 % 81 % 19 % $ 33,412
Alaska
Arizona
Arkansas 44 % 17 % 25 % 86 % 14 % $ 41,218
California
Colorado
Connecticut
D.C.
Delaware
Florida
Georgia 36 % 22 % 24 % 82 % 18 % $ 44,316
Hawaii
Idaho 56 % 24 % 13 % 93 % 7 % $ 52,340
Illinois
Indiana 50 % 16 % 24 % 89 % 11 % $ 58,162
Iowa
Kansas 46 % 13 % 34 % 92 % 8 % $ 49,865
Kentucky
Louisiana 31 % 19 % 26 % 76 % 24 % $ 34,877
Maine
Maryland 68 % 0 % 24 % 92 % 8 % $ 79,088
Massachusetts
Michigan
Minnesota 59 % 12 % 21 % 92 % 8 % $ 66,380
Mississippi 30 % 17 % 29 % 76 % 24 % $ 34,646
Missouri
Montana 60 % 3 % 23 % 87 % 13 % $ 44,889
Nebraska 56 % 17 % 25 % 98 % 2 % $ 45,045
Nevada
New Hampshire 63 % 10 % 27 % 100 % 0 % $ 86,398
New Jersey
New Mexico 44 % 22 % 21 % 88 % 12 % $ 34,728
New York
North Carolina 47 % 15 % 30 % 92 % 8 % $ 37,908
North Dakota 48 % 14 % 37 % 99 % 1 % $ 43,775
Ohio
Oklahoma 42 % 13 % 29 % 84 % 16 % $ 40,444
Oregon
Pennsylvania
Rhode Island
South Carolina 53 % 9 % 29 % 91 % 9 % $ 43,525
South Dakota 64 % 20 % 12 % 95 % 5 % $ 54,492
Tennessee 32 % 20 % 29 % 82 % 18 % $ 38,460
Texas 37 % 22 % 23 % 83 % 17 % $ 41,046
Utah 56 % 17 % 23 % 96 % 4 % $ 59,297
Vermont
Virginia 53 % 18 % 18 % 89 % 11 % $ 62,472
Washington
West Virginia 38 % 21 % 18 % 77 % 23 % $ 43,074
Wisconsin 52 % 13 % 17 % 82 % 18 % $ 56,952
Wyoming 51 % 20 % 16 % 87 % 13 % $ 54,901


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