In Research Report #2 you will be analyzing state-level differences in the minimum wage. In your essay, answer the questions below with data from the sources provided at the end of the assignment. Only use data from these source! An excellent essay will answer the questions using economic theory, data, and your own insights. Your essay should be about 500 words in length (about 2 pages double-spaced with standard font and margins). Remember, this is an academic essay so it should read as such. The Academic Resource Center (ARC) is a great place to get help on your essay. The page length does not include your tables. Include the following heading information:Your Name
Section You Attend
The Minimum Wage, Unemployment, and State Labor Markets
Questions to Answer
- What is the rational for implementing a minimum wage i.e. what is its intended purpose?
- Which states have a minimum wage that is higher than the federal minimum wage?
- Which state has the highest minimum wage? What is it currently? Will the minimum wage change over time? Why?
- Create a table listing the unemployment rate in August 2019 for the states referenced in question 2. Calculate the average unemployment rate for this group. Is the group’s average higher or lower than the national unemployment rate for the same month?
- Create a table with per capita personal income for these states in 2018. What is the average for the group? How does it compare to national (i.e. for the entire U.S.) personal income per capita for the same year?
- Do you believe that a higher minimum wage explains the difference in unemployment rates and income between this group of states and the United States macroeconomy?
Data sources:
• Minimum Wage Data (Questions 2 & 3): http://www.dol.gov/whd/minwage/america.htm
• States Unemployment Rates (Question 4): http://www.bls.gov/web/laus/laumstrk.htm
• U.S. Unemployment Rate (Question 4): http://data.bls.gov/timeseries/LNS14000000
• State Per Capita Personal Income (Question 5): http://research.stlouisfed.org/fred2/release?rid=151
• Personal Income Per Capita, U.S. (Question 5):
• https://research.stlouisfed.org/fred2/series/A792RC0A052NBEA
Sample Solution