Congressional Digest

Congressional Digest April 2021 No. 4 Vol. 100
Indexing the Minimum Wage

Federal Minimum Wage

Pros & Cons of Raising the Federal Minimum Wage

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Indexing the Minimum Wage

A policy alternative to helping minimum wage workers

Generally, indexation is linking one variable’s (e.g., a minimum wage, a benefit) value to changes in another, independent variable (e.g., an average wage, cost of living). For example, a price index is constructed by dividing the price of a market basket of goods and services in a given year by that same basket’s prices in a base year. …

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