Research: A Growth Mindset Can Boost Support for Increasing the Minimum Wage

In 10 studies with over 3,000 participants in the U.S. and India, participants with a growth mindset supported increasing low-wage workers’ compensation more than those with a fixed mindset.

by

and

Krishna Savani

by

and

Krishna Savani

November 06, 2023

HBR Staff/Pexels

Summary.

In the U.S., the value of the federal minimum wage has declined to record lows due to rising inflation. Recent research sheds light on a new factor that may contribute to people’s opinions for or against raising the minimum wage: a growth vs. fixed mindset. The authors hypothesized that decision-makers’ mindsets about intelligence — specifically the belief that abilities are stable (i.e., a fixed mindset) rather than the belief that abilities can grow and develop over time (i.e., a growth mindset) — might contribute to people’s opposition to increasing low-wage workers’ compensation. This held true in correlational and experimental studies, and this pattern held among those who identified as “liberal” or “conservative,” as well as across the social class and income spectrum. While mindsets are just one of the many systemic and psychological factors that contribute to support for or against raising the minimum wage, these findings suggest that grassroots advocates, managers, and business and political leaders seeking support for increasing low-wage workers’ wages may want to consider invoking the growth mindset about intelligence.

Millions of people worldwide are employed in minimum-wage or low-wage jobs (e.g., 44% of the U.S. adult labor force; 30% of India’s adult labor force). CEOs and business leaders consider many factors when deciding the minimum wage their company offers, including legal requirements, staffing costs, employee performance, and moral principles, which helps to explain why companies and leaders vary so widely in their approaches.

SM

Shilpa Madan, Ph.D., is an Assistant Professor of Marketing at the Lee Kong Chian School of Business, Singapore Management University. She aspires to use consumer behavior research to help people live better, more fulfilling, and more sustainable lives. Her research focuses on consumers’ lay theories about the world and cultural differences to enhance individual and societal well-being.
Anyi Ma, Ph.D. is an Assistant Professor of Management at Wisconsin School of Business, University of Wisconsin-Madison. Her research concerns topics related to employee motivations as well as diversity, equity, and inclusion at work.
AR

Aneeta Rattan, Ph.D. is an Associate Professor of Organizational Behavior at London Business School. Her research, teaching, and consulting focus on mindsets and diversity — addressing stereotyping, prejudice, and inequity in the workplace. She works to identify messages that improve and equalize the stigmatized groups’ belonging at work, and to illustrate how mindsets can improve people’s responses to and experiences with overt and subtle biases at work.
Krishna Savani, Ph.D., is a Professor of Management at the Hong Kong Polytechnic University. He conducts research on culture, decision-making, diversity, and morality, and has a pioneering program of research on using machine learning to generate hypotheses in the social and organizational sciences.

Research: A Growth Mindset Can Boost Support for Increasing the Minimum Wage

Partner Center

Explore HBR

HBR Store

About HBR

Manage My Account

Follow HBR