Even the U.S. Department of Labor recognizes the challenges for the states. Those who remain on the rolls are most at risk of long-term dependency, unemployment, marginal employment, and low wages. If there is a minimum wage, it should at least reflect the significant differences in costs of living and general wage levels that exist among the states and even within states. Significantly, the federal government officially recognizes such regional differences in costs of living and general wage rates in paying its own employees. A national minimum wage makes as much sense as requiring Washington to pay federal workers the same wage for an entry-level job in New York City as it does in Fargo, North Dakota, where the cost of living is much lower.
Economic conditions vary widely among the states.
With such wide differences in employment opportunities, governors and state legislators are in a better position than are Members of Congress and the Administration to determine the appropriate entry-level wage levels for their own areas. State legislators understand the living and working conditions in their districts and how a minimum wage rate change would affect economic conditions, job opportunities, and welfare reform for their constituents. Conclusion Congress wisely gave the states direct responsibility for bringing welfare recipients into the workforce. To build on that successful approach, it should also give the states the flexibility they need to adapt their own minimum wage policies to local economic, demographic, and development needs. Instead of raising the federal minimum wage and undermining welfare reform, Congress should promote the states' ability to increase opportunities in their own labor markets in a way that matches their responsibility to move Americans off the welfare rolls.