'Minimum Wage, Unemployment and Going Offshore within the USA'

Minimum Wage, Unemployment and Going Offshore within the USA

I noticed the blog post by Jo Jo about whether Pennsylvanvia having a higher than federal minimum wage would increase unemployment in Pennsylvania and shift jobs out of state.

The U.S. Dpartment of Labor provides a nice Chart of minimum wages by state (well a comparison of State minimum wages to the Federal minimum wage).

There is large difference in some states, like Pennsylvania. $5.15 vs $7.15 (eff July 1, 2007).

The green States are ones with a higher than Federal minimum wage. If the theory is gorrect these states should have higher unemployement rates for unskilled workers and the other states should have seen a shift of businesses that make extensive use of unskilled labor too them.

What is your view?

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