Introduction to the Special Issue : The Facts and Issues of State Income Policy and Minimum Wage Policies

Abstract

Due to the expansion of the global economy and the decline of the labor union membership rate, the labor share of wages has fallen, and middle and lower class employees have seen only sluggish wage growth. However, minimum wage policies are effective in raising wages independently of labor market pressures. We need to reevaluate the impact of minimum wage policies and their effect on reducing poverty and economic inequality.Our four papers focus on topics related to minimum wage polices and can be roughly divided into two groups. The first group analyzes the impact of raising minimum wages on economic performance and poverty. The second group deals with how to raise the minimum wage. Whether the government should intervene in negotiations related to wage decisions between employers and labor unions is a very important issue. Finally, we argue that raising minimum wages and social security systems should not be incompatible.