Do Minimum Wages Close the Racial Wage Gap?

Jeffrey Miron

Twenty-two states are scheduled to increase their minimum wage in 2026. Even though, overall, existing evidence suggests that minimum wage laws reduce employment,

with the largest effects observed in the lowest-skilled groups …. This is likely because a larger share of lower-skilled workers earn the minimum wage.

Some advocates for higher minimum wages nevertheless claim they are necessary to close the earnings gap between black and white workers.

New research...