From WSAW, Wausau, by Hannah Borchert
Millions of Americans are starting off the new year with a pay raise. Eight and a half million American workers will be getting a bigger paycheck throughout the year.
That’s because 23 states increased their minimum wage for 2023 including Wisconsin’s border states, Michigan, Illinois, and Minnesota.
UW-Stevens Point Head of the Sentry School of Business and Economics Kevin Neuman said the state’s $7.25 an hour minimum wage has little impact because we’re seeing higher salaries than that anyway. “If people are paying 10, 12, 14 dollars an hour, for starting workers, that’s the wage that they are actually paying workers,” said Neuman.
However, for states with a higher minimum wage, the increase is more competitive. “When the minimum wage is actually much closer to what markets are actually paying to be able to attract quality workers,” Neuman added.
Neuman credits inflation to the reason why there’s motivation to raise the minimum wage in Wisconsin, “That nominal wage doesn’t buy you as much stuff as it used to.”
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