Evidence of Impact for State Minimum Wage

October 5, 2021 Child Development and HealthEconomic SupportsEquityParental Health and WellbeingPrenatal-to-3 State Policy Roadmap

Download PDF

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 WAGEEVIDENCE 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.

Have questions? Please contact us.

Explore the Evidence

Prenatal-to-3 Policy Clearinghouse
Prenatal-to-3 State Policy Roadmap
Prenatal-to-3 State Policy Roadmap