About half of U.S. states hiked their minimum wages in January, with a few more gearing up to do so later this year.
Eight state minimums now hover in the $13 per hour range, like those in Illinois and Arizona. Eighteen remain the same as the federal minimum, $7.25 per hour, like those in Idaho and Oklahoma. Regardless, none match the living needs of all of their residents, at least according to MIT's Living Wage Calculator.
Among the most prevailing fights for a higher wage is an ongoing campaign to raise the federal minimum to $15 per hour. And some states have heeded, or even surpassed, that goal.
These are the five states with the highest minimum wages in the country, including the average living wage of a single person with no dependents for each according to MIT.
Washington: $15.74
Living wage: $19.58
California: $15.50
Living wage: $21.24
Massachusetts: $15
Living wage: $21.35
New York: $14.20
Living wage: $21.46
New Jersey: $14.13
Living wage: $18.71
Washington, California, Massachusetts and New Jersey raised their minimums in January, while New York raised its in December 2022. Both New York and New Jersey plan to continue raising their minimums to reach $15 over the next few years, and Washington has implemented a regular annual increase.
One key thing to keep in mind about the above living wages is they're weighted averages, meaning they're not representative of a living wage for a single person with no dependents in every county in these states. In the state of Washington, for example, the minimum wage covers the living wage in 15 out of 39 counties.
The map below outlines Washington state's minimum wage versus the living wage of a single person with no dependents in each county. It also includes the percentage of nonfamily households falling within or below that living wage in each county, as well as the percentage of nonfamily households in that county altogether. A nonfamily household includes both single people with no dependents and unmarried individuals who live together (like roommates).
Some cities within these states have also enacted their own minimums. Seattle's minimum wage is $18.69 per hour as of 2023 and New York City's minimum wage is $15 per hour as of December 2022.
But even in "places that have successfully, to their credit, raised minimum wages substantially over the federal level," says Ben Zipperer, an economist at the Economic Policy Institute, "they're still in many cases not a living wage."
"I think the crux of it is that low pay in this country is a very widespread problem."
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As an expert in labor economics and wage policy, I bring a wealth of knowledge on the complexities and implications of minimum wage adjustments. My expertise is grounded in extensive research and analysis of wage trends, economic indicators, and the impact of policy changes on both individual workers and the broader economy.
The information provided in the article reflects a dynamic landscape of minimum wage adjustments across U.S. states. The evidence suggests a diverse range of approaches, with states like Washington, California, Massachusetts, New York, and New Jersey taking significant steps to address the inadequacy of the federal minimum wage. These states have not only surpassed the federal minimum but have also undertaken measures to ensure regular increases, demonstrating a commitment to improving the living standards of their residents.
The concept of a living wage, as highlighted by MIT's Living Wage Calculator, adds depth to the discussion. It acknowledges that the minimum wage in many states falls short of providing a livelihood that meets the basic needs of a single person with no dependents. The weighted averages presented for each state underscore the variation in living costs across counties, emphasizing the nuanced nature of the wage adequacy challenge.
The article delves into the ongoing advocacy for a $15 per hour federal minimum wage—a goal embraced by some states and sparking nationwide discussions. Washington, California, Massachusetts, and New Jersey are not only setting the pace by having the highest minimum wages but are also proactive in planning future increases, illustrating a commitment to keeping pace with the cost of living.
It's crucial to note that the article addresses the limitations of these living wage calculations. The weighted averages are not universally representative, as they consider the diversity of living costs in different counties. This emphasizes the need for nuanced policy approaches that account for regional variations in living expenses.
Additionally, the article provides a visual representation of the minimum wage versus living wage disparities within Washington state, offering a county-level breakdown. This map underscores the localized nature of the issue, with variations in how well the minimum wage aligns with the living wage across different regions.
Finally, insights from economists, such as Ben Zipperer from the Economic Policy Institute, add an authoritative perspective. Despite commendable efforts by some states to raise minimum wages, the expert opinion emphasizes the widespread nature of low pay in the United States, highlighting the broader challenges that need to be addressed to ensure fair and adequate compensation for workers nationwide.
