Orrenius, Pia M.; Zavodny, Madeline - Institute for the Study of Labor (IZA) - 2008
infrequently, inflation
erodes the real value of the minimum wage over time, making it less binding.
8
In addition, given …:
8
During the sample period, only Oregon and Washington had state minimum wages indexed to inflation, and those
laws … were passed during the 2000s. As of 2007, Vermont’s minimum wage increases by the smaller of 5% and the
inflation rate …