Poverty in Oklahoma does not impact every household in the same way. While the state’s overall poverty rate is a significant concern, the data shows that the burden of low wages and the corresponding disadvantages fall more heavily on specific segments of the population.
Our recent report in partnership with Scioto Analysis suggests that raising the state minimum wage to $15 would have a wide reaching impact on the workforce, specifically narrowing long-standing gaps in poverty rates across different genders, demographics, and geographic regions.
Addressing the Gender Poverty Gap
In Oklahoma, there is a measurable disparity in poverty rates between men and women. Currently, the poverty rate for women is approximately 16%, while for men it is 14%. This gap is even more pronounced in single-mother households, who face a poverty rate of over 30%. This is often due to the high costs of childcare and housing on a single income.
However, this report projects significant changes under a $15 minimum wage. First, 23,000 women would be lifted above the federal poverty line and the overall female poverty rate would drop from 15.9% to 14.8%.
Distributional Outcomes by Race and Ethnicity
The report’s microsimulation also tracked how a wage increase would impact various ethnic groups across the state. While white residents make up the largest number of individuals who would move above the poverty line (over 19,000 people), other groups are projected to see the most significant proportional improvements. Native American residents, for example, are projected to see the largest relative decline in poverty, with the rate dropping from 19.0% to 17.3%. Black Oklahomans, who currently face a poverty rate exceeding 22%, would also see a substantial reduction in the number of households living below the poverty threshold.
Balancing the Rural and Urban Divide
Beyond demographic data, the report also examines the geographic divide in Oklahoma. Poverty is often more acute in rural areas (18.5%) compared to urban centers (14.5%), largely due to limited access to competitive job markets.
The simulation found that a $15 wage would have a balanced impact across the state’s geography. An increased minimum wage would lift 20,000 rural residents out of poverty while 19,800 urban residents would see the same result. Because rural residents make up a smaller portion of the total population, these numbers indicate that the policy would have a higher relative impact on rural communities, helping to stabilize household incomes in less populated areas.
Correcting Labor Market Inefficiencies
Economists point out that in many parts of Oklahoma, the labor market is “monopsonistic”—meaning employers have disproportionate power to set wages below the actual value of a worker’s output. This is especially true in areas with little competition for labor.
Raising the minimum wage serves as a corrective tool. By bringing wages closer to a competitive level, the policy ensures that workers in all categories, regardless of their background or where they live, are able to capture a fairer share of the value they create for the Oklahoma economy.
For more details on the study’s methodology:
Review the full report: “Poverty and Cost of Living in Oklahoma: Minimum Wage Impacts” by Scioto Analysis here.
