Higman's lemma has a very elegant, non-constructive proof due to Nash-Williams [NW63] using the so-called minimal-bad-sequence argument. The objective of the present paper is to give a proof that uses the same combinatorial idea, but is constructive. For a two letter alphabet this was done by Coquand and Fridlender [CF94]. Here we present a proof in a theory of inductive definitions that works for arbitrary decidable well quasiorders.