Wal-Mart and the Minimum Wage

Last year 25 states increased their minimum wage requirements, and the first federal minimum wage increase since 1997 is currently under consideration by the U.S. Congress. As all this activity surrounds the topic, it may be important to examine what characterizes an area with a higher minimum wage. More than half of the states in the U.S. have elected to impose a minimum wage that exceeds the federal minimum. This study considers demographic and economic characteristics in an attempt to identify what differentiates minimum wage levels across states. In addition to the standard economic measures, this paper also looks at the role Wal-Mart, the country’s largest corporation, may play in the determination of state minimum wage rates. Literature Review