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The Rise of American Minimum Wages, 1912–1968

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  • Price V. Fishback
  • Andrew J. Seltzer

Abstract

This paper studies the judicial, political, and intellectual battles over minimum wages from the early state laws of the 1910s through the peak in the real federal minimum in 1968. Early laws were limited to women and children and were ruled unconstitutional by the Supreme Court between 1923 and 1937. The first federal law in 1938 initially exempted large portions of the workforce and set rates that became effectively obsolete during World War II. Later amendments raised minimum rates, but coverage did not expand until 1961. The states led the way in rates and coverage in the 1940s and 50s and again since the 1980s. The most contentious questions of today—the impact of minimum wages on earnings and employment—were already being addressed by economists in the 1910s. By about 1960, these discussions had surprisingly modern concerns about causality but did not have modern econometric tools or data.

Suggested Citation

  • Price V. Fishback & Andrew J. Seltzer, 2021. "The Rise of American Minimum Wages, 1912–1968," Journal of Economic Perspectives, American Economic Association, vol. 35(1), pages 73-96, Winter.
    • Handle: RePEc:aea:jecper:v:35:y:2021:i:1:p:73-96
    DOI: 10.1257/jep.35.1.73
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    Cited by:

    1. Andrew J. Seltzer, 2024. "The Political Economy of Minimum Wage Setting: The Factories and Shops Act of Victoria (Australia), 1896-1913," CEH Discussion Papers 02, Centre for Economic History, Research School of Economics, Australian National University.
    2. Arindrajit Dube & Attila Lindner, 2024. "Minimum Wages in the 21st Century," RF Berlin - CReAM Discussion Paper Series 2524, Rockwool Foundation Berlin (RF Berlin) - Centre for Research and Analysis of Migration (CReAM).
    3. Koki Arai, 2021. "The Characteristics of Low Bid Price Survey Standards and Their Impact," Journal of Industry, Competition and Trade, Springer, vol. 21(4), pages 593-608, December.
    4. Seltzer, Andrew, 2024. "The Political Economy of Minimum Wage Setting: The Factories and Shops Act of Victoria (Australia), 1896-1913," IZA Discussion Papers 16788, Institute of Labor Economics (IZA).

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    More about this item

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J38 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Public Policy
    • J83 - Labor and Demographic Economics - - Labor Standards - - - Workers' Rights
    • K31 - Law and Economics - - Other Substantive Areas of Law - - - Labor Law
    • N31 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: Pre-1913
    • N32 - Economic History - - Labor and Consumers, Demography, Education, Health, Welfare, Income, Wealth, Religion, and Philanthropy - - - U.S.; Canada: 1913-

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