Wages rose alongside the minimum wage, but less in agriculture
In the United States from 1990 to 2014, each 1% rise in the minimum wage was associated with about 0.4% higher hourly pay. The link was weaker in agriculture.
The key idea
When the minimum wage rose, hourly wages tended to rise too, but less in the sector with legal exemptions.
The study, in plain language
The analysis compared minimum-wage changes across U.S. states, years, and sectors. Agriculture had legal exemptions that reduced coverage for some workers, so it was compared with other low-wage occupations: construction, hotels, and restaurants.
Across the data, hourly wages rose alongside the minimum wage. In agriculture, the increase was smaller than in the other sectors, a pattern consistent with its limited coverage. The comparison showed how the relationship between the legal floor and pay varied.
What they found
- Agriculture was compared with other low-wage sectors: construction, hotels, and restaurants.
- Hourly wages tended to rise alongside the minimum wage.
- The link was weaker in agriculture than in the other sectors.
Something to think about
Minimum-wage rules do not apply equally to every job. Think of your own work, or someone close to you: does that rule reach it in the same way as other jobs?
How they studied it
The team analyzed the CPS survey, using data from March 1990 to 2014, and separately analyzed an agricultural-worker survey through 2014. It compared minimum-wage changes across states, years, and sectors, including agriculture, construction, hotels, and restaurants.
What the study cannot show
- The agricultural sample was small in one survey, and the two sources cover different groups. This was not a randomized experiment.
- The study does not establish one effect for every worker or predict what an individual will earn if the minimum wage changes.
The original study
Do minimum wage laws affect those who are not covered? Evidence from agricultural and non-agricultural workers
Source under CC BY 4.0. English adaptation and explanation by PaperFlow, with AI assistance. The text has been reorganized for a general audience; it is not the complete paper and does not imply endorsement by its authors.
One study alone does not represent a field's consensus. Educational content does not replace professional advice. Report a possible error.
