Minimum wage increase approved in six states. Democratic Congressional victory makes national increase in minimum wage much more likely

Hunger Notes

(November 9, 2006) Voters approved minimum wage increases in all six states where they were on the ballot.  In addition, it appears that Democrats will make a national increase in the minimum wage a priority when they take control of Congress in January.

Minimum wage increases were approved in Arizona, Colorado, Missouri, Montana, Nevada and Ohio.  More than 1.5 million workers in these states will see their wages increased. Not only did each of these states raise their minimum wages, they also adopted automatic annual cost-of-living adjustments, bringing to 10 the number of states with inflation indexing. Twenty-eight states now have minimum wages above the federal level.

House Minority Leader Nancy Pelosi (D-CA), poised to become speaker, said a minimum-wage increase is one of the goals the new Democratic-controlled Congress hopes to accomplish when it convenes in January.  Sen. Edward M. Kennedy (D-MA) proposed legislation earlier this year to raise the federal minimum wage to $7.25, but Republicans prevented him from bringing it to a vote. On Wednesday, Kennedy said his party's leaders had promised to put his bill to an immediate vote.

For a study summarizing the effect of minimum wage increases on workers and the economy see Minimum wage trends: understanding past and contemporary research  Liana Fox Economic Policy Institute October 26, 2006
 

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