John Burton, Amy Hanauer, Policy Matters Ohio & the Center for American Progress, May 2006

For 68 years, the minimum wage has been an important part of an economy that works for all Americans. Recently, the federal government has let the minimum wage deteriorate in real value to its lowest point in more than 50 years. In response, twenty states and the District of Columbia have raised their minimum wages above the federal level, up from three in 1996. A grassroots coalition in Ohio is seeking to put an initiative on the November 2006 ballot to raise Ohio’s minimum wage to $6.85 an hour.

This study compares performance of small businesses (establishments under 500 employees) in the 39 states that accepted the federal minimum wage before 2003 to the twelve states (including the District of Columbia) that had minimums above the federal level in January, 2003. Nine new states have joined the high-wage group since.

Download Good for Businesses: Small business growth and state minimum wages