I thought we were talking about minimum wage states, not low wage states? ...
Pinqy, I don't know what you mean by “minimum wage states”.
FYI, just so we understand each other: Throughout the world, labor markets within every political jurisdiction have in effect what we in the USA consider as a “minimum wage rate”, (i.e. a rate applicable to the very least capable or desirable employee or job applicant.
USA's federal minimum wage rate is an explicit, definite rate determined and legally reasonably enforced by our federal government.
In the USA, wherever there are multi minimum wage rates, the greatest rate that is effectively enforced, is the applicable minimum rate; but in the USA a minimum wage rate is inconsequential if there's a shortage of available labor to perform any particular task or job. I suppose these two stipulations hold true in most, if not in all of the world's labor markets.
There are various differences of minimum wage rate concepts and methods throughout the world; such as:
Indefinite and market determined rates.
Definite rates determined by some non-government or quasi-government entities such as labor unions.
Definite or indefinite rates determined by social customs some other than a government.
If the U.S. federal minimum wage rate were eliminated, a state's minimum rate would be much more difficult to enforce and sustain, thus reducing its effectiveness.
To the extent that a state's minimum rate exceeds the federal minimum wage rate, the state's rate is somewhat less sustainable and to a lesser degree, somewhat more difficult to enforce; all of which somewhat hinders those higher rate's effectiveness.
In all cases, difficulties for states with higher minimum wage rates. There are particular difficulties for higher minimum rate political jurisdictions, to the extents of differences where they border other lower minimum rate political jurisdictions.
Respectfully, Supposn