> I would also assume that those in the minimum wage range would always search for higher paying jobs, because the difference between $7/hour and $11/hour is li

> I would also assume that those in the minimum wage range would always search for higher paying jobs, because the difference between $7/hour and $11/hour is life-changing I would assume they are less likely to. Such a move may be life changing, but change isn't always for the best. If you have a $7/hour job you know what you've got. What if the $11/hour job is unbearable or the employer finds that you're not a good fit? As you point out, chances are you don't have any money in the bank to weather the mistake, making it an incredibly risky move. If you've been making $70/hour you're more likely to be in a position that you can be without work for a few months if things go bad, making a jump to $110/hour not so scary. Someone making $7/hour probably has less time to look for a new job. Not only may they be working more hours to make ends meet, but lower paying jobs tend to be more commanding of your time while on the job. It is unlikely they can browse jobs sites while sitting in a boring meeting like tech can. Not to mention that a tech worker is more likely to have recruiters handing them opportunities. As minimum wage exists as a tool to keep liquidity in the market in the face of workers not staying liquid by their own volition, once you know minimum wage is in the picture, you've already shown that the workers won't seek higher pay by themselves, no matter what their reasons are. If one state faced that problem, it seems likely that a neighbouring state would have the same problem. Cultures tend to be similar within narrow geographic areas. So, I'm not sure I understand the basis of your assumption.