OKPOLICY.ORG
The state minimum wage has significant consequences for American Indian/Alaska Natives in Oklahoma
Oklahoma has one of the nation’s highest poverty rates, with nearly 1 in 6 residents living in poverty. The state’s minimum wage is a contributing factor to our long-standing poverty. The need to address Oklahoma’s high concentration of poverty has increased as the cost of living has risen while the minimum wage rate has remained the same for the past 15 years.
Wage compensation has significant consequences for Oklahoma and especially rural Oklahomans of color. American Indian, Latino, and Black Oklahomans experience poverty rates higher than both Oklahomans on the whole or their white peers. The poverty rates for Oklahomans of color range from 19.8 percent for American Indian/Alaska Natives (nearly 1 in 5) to 28.1 percent for Black residents (more than 1 in 4). These stark differences stem from systematic racism and structural inequities that have created and maintained high poverty rates for these communities.
Some have argued that Tribal citizens and American Indian residents experience higher compensation because of the Tribes in the state, but this is not always the case.
Oklahoma’s minimum wage is still tied to the federal minimum wage, which was established by the Fair Labor Standards Act of 1938. More than eight decades later, the minimum wage is more inequitable than it has been, particularly for people from marginalized communities.
In the larger conversation about economic well-being, American Indians are often overlooked or completely left out due to a lack of data or miscategorization of American Indian/Alaska Native respondents into the “other” category because of inadequate data. By taking the time to really understand the disproportionate impacts of economic structural factors, Oklahoma can take an essential step in both raising our state’s living standards and promoting economic justice.
Low wages keep workers trapped in cycles that prevent Oklahoma from reaching economic prosperity
All Oklahomans want to raise strong, healthy families in thriving communities. However, when workers are trapped in low wages in an economy ranked as one of the nation’s worst, our economic activity and overall economic health continues to create a growing disparity. Oklahoma’s high poverty level is especially pronounced for our children, where 1 in 5 children live below the federal poverty level. When children experience poverty, it means that they live in households that struggle to make ends meet. This includes access to healthy food and the prices of groceries. Two main food staples for many households — milk and eggs — have seen prices rise substantially since the last time the minimum wage was adjusted in 2009.
The lost buying power from an hour of work at minimum wage shows in grocery costs. In July 2024, a gallon of milk cost $3.98 (up from $2.99 in 2009) and a dozen eggs cost $3.08 (up from $1.50 in 2009). At its 2024 cost, a gallon of milk now accounts for more than half of the state’s minimum hourly wage. Adding in $3.08 for a dozen eggs and accounting for taxes and likely price variations in rural Oklahoma, just these two household staples can cost more than a minimum wage worker earns in an hour. By contrast, in 2009, with the minimum wage still at $7.25 per hour, those same groceries cost just $4.49. Milk and egg prices reflect some of the many difficult decisions facing households with minimum wage workers.
While the recent state grocery tax cut will cut some costs for Oklahoma households, minimum wage workers are expected to see less than $65 per year in savings. Oklahoma’s minimum wage should better meet the rising cost of living. Groceries are one example where the cost of necessities has increased while the minimum wage has stayed the same. Housing remains a place where this is an issue. For example, a modest rental home is out of reach for nearly 40 percent of Oklahoma’s wage earners. The larger the gap between the minimum wage and inflation, the less effective the minimum wage becomes in ensuring families can afford even the most basic of necessities.
Economic opportunity should be within reach for all Oklahoma families
The growing disparity in economic opportunity for all Oklahomans should be addressed by raising the minimum wage. Oklahoma’s communities of color are overrepresented in our poverty rates: 1 in 5 American Indian/Alaska Native and Latino Oklahomans, and more than 1 in 4 Black Oklahomans, live in poverty. This compares to just 1 in 8 white Oklahomans. A higher minimum wage would provide much-needed relief to many workers, but especially to Black, Indigenous, and Latino wage earners.
Raising the state minimum wage would be beneficial to address the growing poverty rate for American Indians, which increased from 18.1 percent in 2021 to 19.8 percent in 2023. A higher minimum wage would help raise living standards and promote economic justice for American Indians, as well as Black and Latino wage earners. These workers are disproportionately represented in low-wage jobs and have been historically marginalized and disenfranchised. This makes them particularly vulnerable to economic inequality and economic hardship.
We need to reduce poverty and increase opportunities for individuals and families. Oklahoma families need a wage that helps families sustain themselves. While a recent report from the Kansas City Federal Reserve showed that American Indians are a major driver in the state’s rising labor force participation rate, Tribal citizens remain disproportionately low-income earners and contribute to the state’s high poverty rates. While a number of Tribes have increased their minimum wage to be above the state’s level, this leaves out Tribal citizens who live off-reservation, out of their Tribal jurisdictions, and work in non-Tribal industries experiencing economic downturns. As the cost of living continues to rise, historical, structural inequalities leave American Indian families increasingly exposed to economic insecurity and poverty.
All Oklahomans should be able to afford to live
Historically, American government policies intentionally hindered economic security for American Indians, taking both land and resources. Many of Indian Country’s economic issues today are still connected to those harmful policies. Those disparities continue to persist today. American Indian women earn 54.7 cents for every dollar paid to white, non-Hispanic men, which demonstrates disparities for both gender and racial/ethnic differences. For American Indian households, they earn just 65 cents for every dollar paid to the median white, non-Hispanic household.
These disparities are multiplied when taken in combination with limited employment opportunities in rural Oklahoma and historically racialized labor inequities. As a result, many American Indian workers have to accept a minimum wage job, work multiple jobs, or be out of work and job searching while also trying to provide for their families.
Adequate compensation for all Oklahomans means all of our friends and neighbors can afford to live. But, it has significant consequences for American Indians when taking into account the historical context and socioeconomic progress made thus far in Oklahoma. While Tribal governments have provided economic opportunity for their citizens (and many non-Natives) and grown their shared tribal-state economies, many American Indians still experience the racial wealth divide, disenfranchisement in the workforce, and wages that continue to exacerbate poverty.
All Oklahomans can benefit from a raised minimum wage
One way to provide a long overdue boost in both immediate earnings and overall economic justice is to establish a more equitable minimum wage in Oklahoma. Because economic security enables economic opportunity, increasing wages for minimum wage workers will improve the ability for more Oklahomans to secure safe housing, improve their family outcomes, and increase their overall well-being.
Raising the state minimum wage delivers much needed support for Oklahoma workers and their families, while also helping reverse our state’s high poverty rates. Increased wages also increase economic activities in our local and state economies, which helps local business owners and operators.
Our state minimum wage needs to keep pace with the rising cost of living. An increased minimum wage means that we can all at least afford basic necessities, a home, and raise thriving families. Poverty is a policy choice. When Oklahoma lawmakers keep the state’s minimum wage at its lowest possible rate, it ensures that our state’s low-wage workers will continue to struggle to make ends meet. Oklahoma can and should address it by raising the minimum wage.
