From Table 2.2, the CPI (with a base of 100 in 1982–1984) rose from 130.7 in 1990 to 201.6 in 2006. The federal minimum wage (nominal hourly wage) in 1990 was $3.80, and it was $5.15 in 2006. Calculate the minimum wage in real (1982–1984) dollars. Did the federal minimum wage increase or decrease in real dollars from 1990 to 2006?

Table 2.2

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Nominal and Real Hourly Earnings, U.S. Nonsupervisory Workers in the Private Sector, 1980-2009 Average hourly earnings Consumer Price Index (CPI) using 1982-1984 as a base Average hourly earnings, 1982-1984 dollars (using CPI) Average hourly earnings, 2009 dollars (using CPI) Average hourly earnings, 2009 dollars (using CPI inflation less I percent per year) 1980 $ 6.85 82.4 $ 8.31 $17.83 $13.44 1990 $10.20 130.7 $ 7.80 $16.74 $13.79 2009 $18.60 214.5 $ 8.67 $18.60 $18.60