Arizona is one of the states that has not adopted a statewide minimum wage yet, leaving millions of workers at risk of low pay and exploitation. However, a state report released in March 2023 explored the idea of regional minimum wages, which could help address some of the challenges and opportunities facing the state’s labor market.
The report, titled “Arizona’s Regional Minimum Wage: A Feasibility Study”, was commissioned by the Arizona Department of Economic Security (DES) and conducted by researchers from Arizona State University and University of Arizona. It analyzed the potential impacts of implementing regional minimum wages across different regions of the state, based on various economic, social, and political factors.
The report found that regional minimum wages could have positive effects on workers’ income, employment, health, and well-being, as well as on businesses’ productivity, profitability, and competitiveness. It also identified some challenges and recommendations for implementing regional minimum wages in Arizona, such as:
- Developing a clear and consistent framework for setting and adjusting regional minimum wages
- Engaging with stakeholders and communities to ensure public support and participation
- Providing adequate training and education opportunities for workers and employers
- Monitoring and evaluating the outcomes and impacts of regional minimum wages
The report concludes that regional minimum wages are a feasible and beneficial option for Arizona’s labor policy, which could help reduce poverty and inequality in the state, as well as promote economic growth and social justice.
