An increase in the federal minimum wage is now likely

In his second article on the minimum wage, Alan Manning looks at the history of the policy since 1938, finding that the federal minimum remains relatively low compared to that in most other OECD countries. He writes that Presidential proposals, which began nearly a year ago, may see an increase in the minimum wage to over $10 an hour. He argues that such an increase would be even more effective if matched with greater utilization of the current Earned Income Tax Credit, which would help the poorest and, working together, would prevent benefits from being shifted to employers.