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Evidence of Impact for State Minimum Wage

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A state minimum wage of at least $10 per hour is one of the five most effective policies a state can A state minimum wage of at least $10.00 per hour is one of the five most effective policies a state can implement to ensure children get off to a healthy start and thrive, and that promote greater equity in child wellbeing.

The federal minimum wage requires that most hourly workers be paid at least $7.25, but states can establish higher wage thresholds.

The most rigorous research studies show that an increase in the minimum wage:

IMPACT OF STATE MINIMUM WAGE EVIDENCE OF IMPACT

Increases earnings
  • A 10% increase in the minimum wage led to a 3.5% increase in earnings for low-income families

Has no adverse effects on employment
  • For children under age 6 whose mothers had no college degree, a 10% boost in the minimum wage increased the likelihood of parental employment by 7.4%

Reduces poverty rates among children
  • For children under age 6 whose mothers had no college degree, a 10% increase in the minimum wage reduced poverty by 9.7%

Improves birth outcomes
  • A $1.00 minimum wage increase above the federal level led to approximately a 2% decrease in low birthweight and a 4% decrease in postneonatal mortality

Reduces child neglect
  • A $1.00 increase in the minimum age reduced child neglect reports by 10.8% for children under age 5

Visit the Clearinghouse for the comprehensive evidence review on State Minimum Wage.

The prenatal period to age 3 is the most sensitive and rapid period of growth for the brain and body. State policy choices have a substantial impact on the wellbeing of infants, toddlers, and their parents, and on promoting equity among children. See the Prenatal-to-3 State Policy Roadmap for more information on the most effective policies and strategies states can implement to help children thrive from the start.

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