Economic Indicators
Assessing the Value of the Minimum Wage
As required in Section 4 of the Federal Labor Standards Act (FLSA), the Secretary of Labor has assessed the value of the minimum wage relative to changes in the cost of living (prices), income required to maintain a standard of living above poverty, a wage level representative of most Americans, and the ability of employers to absorb wage increases (productivity and profits). In general, this examination indicates that in spite of increases of $.50 in October 1996 and $.40 in September 1997, the FLSA wage floor has not kept pace with key economic indicators. Prices One barometer of the adequacy…
