And this from Atlanta Fed policy adviser John Robertson:
The blue line is the relative median wage of the lowest quartile in the 28 states that increased their minimum wage (23 states introduced new minimum wage levels, and five implemented increases legislated before 2014), and the green line is relative median wage for the states that did not increase their minimum wage. We would expect to see a rise in the relative median wage in the states that raised their minimum wage, and indeed we do. For the group of states that increased minimum wages (the blue line), the relative median wage is now closer to that of states that did not increase their minimum wage (the green line).
Interestingly, though, even in the “no increase” states, the relative median wage has improved, suggesting that the increased tightness of labor markets, or some other factor than hikes in state minimum wages, is playing a role in pushing up the pay for those in lower-wage jobs. Consistent with the message of Chair Powell’s speech, the good news is that there is scope to continue to build on the gains from the long and ongoing expansion for workers at the bottom end of the wage distribution.