« This Day In History: June 6 | Main | This Day In History: June 7 »

Federal Minimum Wage Rates Over Time

Fed_min_wage.jpg

Congress recently approved raising the federal minimum wage over the next two years. From the current rate of $5.15 per hour, the federal minimum wage will rise to $5.85 per hour on July 24. It will again rise, to $6.55 an hour, on July 24, 2008, and to $7.25 an hour on July 24, 2009. The last increase came in 1997, when the federal minimum wage was at $4.75 an hour.

I compiled a graph a while ago comparing the historic value of the federal minimum wage in current and constant dollars. The Fair Labor Standards Act of 1938 established minimum wage coverage, but the graph only shows data from 1950 onward for simplicity. In constant dollars, the federal minimum wage peaked in 1968; the rate then of $1.60 per hour would be $9.45 per hour in today's dollars.

Links:
"Congress Approves Minimum Wage Hike" (Washington Post)
U.S. Dept. of Labor Wage and Hour Division
Minimum Wage Laws in the States (U.S. Dept. of Labor)--Interesting graphic showing how each state's minimum wage rate compares to the federal wage rate.
What Is a Dollar Worth? (Federal Reserve Bank of Minneapolis)

Note: Graph labels corrected September 13, 2007.

TrackBack

TrackBack URL for this entry:
http://www.worldalmanac.com/wablogadmin/mt-tb.cgi/460

Post a comment

(If you haven't left a comment here before, you may need to be approved by the site owner before your comment will appear. Until then, it won't appear on the entry. Thanks for waiting.)

About

This page contains a single entry from the blog posted on June 6, 2007 10:05 AM.

The previous post in this blog was This Day In History: June 6.

The next post in this blog is This Day In History: June 7.

Many more can be found on the main index page or by looking through the archives.

Creative Commons License
This weblog is licensed under a Creative Commons License.