The Minimum Wage and Income Inequality: Analysis of Effects on the State and Federal Level

Abstract: In this paper, I investigate how minimum wage policies at the state and federal level impact income inequality in the United States. Using the Gini index to measure income inequality, I find that minimum wages imposed at the federal level have no statistically significant effect on income inequality, while those imposed at the state level are expected to reduce income inequality with a high degree of statistical significance. As the minimum wage has become more viewed as a potential tool for affecting income inequality, understanding the differing effects that occur at different levels of government will become increasingly important for effective policy implementation. As federal minimum wages are inherently “one size fits all” policies, it is expected that changes to the minimum wage made at the state level will offer policy makers a greater ability to impact income inequality. Keywords: Income inequality, minimum wage, personal income. Title: The Minimum Wage and Income Inequality: Analysis of Effects on the State and Federal Level Author: Brian Towell International Journal of Social Science and Humanities Research ISSN 2348-3156 (Print), ISSN 2348-3164 (online) Vol. 13, Issue 2, April 2025 - June 2025 Page No: 487-489 Research Publish Journals Website: www.researchpublish.com Published Date: 24-June-2025 DOI: https://doi.org/10.5281/zenodo.15727616 Paper Download Link (Source) https://www.researchpublish.com/papers/the-minimum-wage-and-income-inequality-analysis-of-effects-on-the-state-and-federal-level