The minimum wage lift is the biggest increase to the minimum wage ever enacted in one jump. Firstly, other workers above the minimum wage workers are likely to demand higher wages to maintain a degree of relatively between them and the minimum wage workers. 123RF Gareth Kiernan: " other workers above the minimum wage workers are likely to demand higher wages to maintain a degree of relatively between them and the minimum wage workers." America's federal minimum wage - although note that many states have minimum wages higher than that - is 34 per cent of the median... "As the minimum wage here increases relative to the median, the 'bindingness' of the minimum wage increases.

Source: Stuff March 31, 2019 21:55 UTC