A striking analysis of entry-level wage growth reveals that Southern states have experienced the largest real wage increases over the past 89 years, dramatically outpacing their Northern and Western counterparts when adjusted for inflation.
The study, comparing entry-level hourly wages from 1935 to 2024, shows that South Carolina, Georgia, Mississippi, Alabama, and Arkansas achieved remarkable gains of 150% or more above inflation during this period. This represents a major economic transformation for a region that historically had among the lowest wages in the nation.
In contrast, many Northern and Western states, despite their reputation as high-wage regions, demonstrated minimal real wage growth over the same timeframe when accounting for inflation.
The case of Illinois stands out as particularly noteworthy. Despite leading the nation with the highest entry-level wage of $0.67 per hour in 1935, Illinois has seen its competitive advantage erode substantially. By 2024, the state ranked 39th nationally with an entry-level wage of $14.06 per hour, barely exceeding its minimum wage requirement of $13 per hour.
The analysis used data from the U.S. Department of Labor's Bureau of Labor Statistics for 1935 rates, focusing on "common laborers" - workers performing basic physical or manual tasks requiring minimal training. Current wage data was sourced from ZipRecruiter, with inflation calculations showing that $1 from 1935 equates to $23.20 in today's money.
This shift in wage distribution highlights major changes in regional economic dynamics over nearly nine decades, with Southern states demonstrating remarkable progress in worker compensation relative to historical standards.
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