The Federal Minimum Wage: The Issue of Indexation (CRS Report for Congress)
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| Release Date |
Jan. 22, 2007 |
| Report Number |
RL30927 |
| Report Type |
Report |
| Authors |
Gerald Mayer, Domestic Social Policy Division |
| Source Agency |
Congressional Research Service |
Summary:
This report examines several aspects of the issue of indexing the basic federalminimum wage. If indexation were implemented, the approach adopted could welldepend on Congress' view of the rationale for having a minimum wage. Therefore,the report discusses the major arguments that have been made in support of aminimum wage. Some economic measures that could be used for indexation appearto be more consistent than others with the major arguments for a minimum wage.Therefore, the report also examines several economic measures that could be usedfor indexation. Finally, if indexation were adopted, the future value of the minimumwage would depend not only on the economic measure used but also on the baseperiod selected (i.e., initial value of the minimum wage). Using different economicmeasures and base periods, the report illustrates what the minimum wage would havebeen in September 2006 (or the end of 2005, depending on the measure) if it hadbeen indexed.
