Minimum Wage Rate By State

Source:
U.S. Department of Labor

Release:
Minimum Wage

Units:
Dollars per Hour, Not Seasonally Adjusted

Frequency:
Anuual

Available Through:
12/31/2021

Why Use:

State minimum wage rate measures the lowest value that employers can legally pay their worksers in each US state. This indicates the average cost of living in the state.

Suggested Treatment:

The data shows autocorrection, seasonality and a non-normal distribution. The data should be differenced and seasonally adjusted. While the Order Norm transformation, provides the best normality, the Square Root variable will also perform well.

Grain Transformation:

Data is unable to be distributed by time or geography. The roll up method used is Weighted Average.

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Minimum Wage Rate By State

Auto Correction Function

Auto Correlation Function After Differencing

Partial Auto Correlation Function

Autocorrectation Analysis:

Data shows autocorrectation indicating a need for differencing

The ACF indicates 1 order differencing is appropriate.

Following first order differencing, no further differencing is required based on the differenced ACF at lag one of -0.05

Trend Analysis:

The Kwiatkowski-Phillips-Schmidt-Shin (KPSS) test, KPSS Trend = 0.47 p-value = 0.01 indicates that the data is not stationary.

Distribution Analysis:

The Shapiro-Wilk test returned W = 0.90 with a p-value =0.00 indicating the data does not follow a normal distribution.

A skewness score of 0.58 indicates the data are moderately skewed.

Hartigan's dip test score of 0.08 with a p-value of 0.00 inidcates the data is multimodal

Statistics (Pearson P/ df, lower => more normal)

No transform
2.40
Box-cox
2.37
Log_b(x-a)
2.43
sqrt(x+a)
2.33
exp(x)
5.83
arcsinh(x)
2.43
Yeo-Johnson
2.37
OrderNorm
2.17

Data Notes:

The following states do not report for this feature: Alabama, District of Columbia, Louisiana, Mississippi, South Carolina, Tennessee, Puerto Rico.

Citation:

U.S. Department of Labor, State Minimum Wage Rate, retrieved from FRED, Federal Reserve Bank of St. Louis; January 23, 2020.

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