Discussion Question

Suppose that you, as an analyst, are very much concerned with the problems of poverty and homelessness.  What is the "best" (i.e., most appropriate from a policy perspective) level of the minimum wage?

Data Set

Minimum Wage Level (in dollars), 1938-1997

Source:  Department of Labor (http://www.dol.gov/dol/esa/public/minwage/chart.htm)

Advanced Questions

How are the costs of living important for determining the appropriate level of the minimum wage?  If the costs of living vary across regions, how should this effect minimum wage policy?