Opportunity & Inclusive Growth Institute

Minimum Wage

In effect since January 2018, the city of Minneapolis' new minimum wage law outlines scheduled, incremental increases over several years, eventually raising the minimum wage for all city businesses to $15 an hour by July 2024.

Researchers at the Federal Reserve Bank of Minneapolis are completing a multi-year impact study on the city of Minneapolis’ recent and ongoing minimum wage increase. Loukas Karabarbounis, Jeremy Lise, and Anusha Nath have partnered with the Bank’s Opportunity and Inclusive Growth Institute to examine short run and long run effects of minimum wage increase on workers and firms.

Our researchers

Loukas
Karabarbounis

Consultant, Federal Reserve Bank of Minneapolis
Associate Professor of Economics, University of Minnesota

Research interests: the global decline of labor’s share of income, productivity and capital flows in South Europe, and cyclical fluctuations in labor markets

Jeremy
Lise

Senior Scholar, Opportunity and Inclusive Growth Institute
Associate Professor of Economics, University of Minnesota

Research interests: wage and employment dynamics, job mobility, human capital

Anusha Nath

Anusha
Nath

Research Economist, Federal Reserve Bank of Minneapolis

Research Interests: development economics, labor market dynamics, education and human capital development


Study Findings

Baseline Findings Presentation

September 13, 2018 | Minneapolis City Council

Presentation slides  [PDF]

The Minneapolis Minimum Wage Increase Baseline Report  [PDF]


More from the Minneapolis Fed

A rising tide: Who’s affected by a higher minimum wage in Minneapolis?

Alyssa Augustine | September 14, 2018

Service industries employ the most workers at the low end of the pay range

Minneapolis Fed to Study Effects of City’s New Minimum Wage Rule

Alyssa Augustine | March 6, 2018

With unique set of big data, Fed economists will scrutinize wage hike impact on workers, firms and consumers


Media Coverage

Ahead for the Minneapolis Fed: studying how a higher minimum wage affects the city

Star Tribune | December 23, 2017