A Case for Indexing the Minimum Wage in California: An Analysis of Indexed Minimum Wage Policies in Santa Fe, NM and San Francisco, CA

Abstract

Minimum wages vary greatly throughout the United States. Many states follow the federal minimum wage, and other states enact their own higher minimum wage. However, in high cost-of-living municipalities, local governments are enacting higher minimum wages or living wages. Businesses tend to resist these increases for fear of lost business, although thorough empirical studies show that wage increases do not hurt local economies and can actually cause the local economy to grow. This paper focuses on minimum wages that apply to all works, but many local governments have elected to pay ‘living wages’ for employees or contractors.

Keywords: minimum wage, indexed minimum wage, living wage