S., poverty rates have not been substantially reduced (Joint Economic Committee, 1995)
The majority of minimum wage earners were working part-time, defined as less than 20 hours/week (Turner, 1999). Of all minimum wage workers, only 15% are living at or below the poverty line (Kersey, 2004)
Scholars and economists have conflicting answers to those questions. Some will argue that reducing the minimum wage will actually increase employment opportunities, but others present evidence to the contrary (Krugman, 2009)
In addition, increases in the minimum wage are associated with an earlier age for leaving school." (Neumark, 1995) Thus, even at the earliest stages of employment, the minimum wage is seen to favor more highly skilled workers at the direct expense of the very people it is designed to protect
In addition, increases in the minimum wage are associated with an earlier age for leaving school." (Neumark, 1995) Thus, even at the earliest stages of employment, the minimum wage is seen to favor more highly skilled workers at the direct expense of the very people it is designed to protect
The social case for maintaining a minimum wage is clear. When people work hard, they deserve to be able to survive, and to take care of their families (Greene, 2013)
Rewarding people for the work they contribute is the least our society can do. There is also a strong economic case for the minimum wage (Romer, 2013)
First, there is the issue of reconciling increased labor costs with static production profits. According to the research, "Minimum wage increases make unskilled workers more expensive relative to all other factors of production," (Gorman 2008)
25 per hour). This has meant that the $5-foot-longs are simply not profitable in San Francisco" (Cahill 2012)
15 to $7.25 -- increases in the minimum wage did not cause employment declines" (Hall & Gable 2012)
But the effects of raising the minimum wage would seem to be relatively small in terms of the impact on the American economy. Only 1 to 2% of people are earning minimum wage "and they make up only about 5% of the workforce nationally" (Kaste 2012)
The minimum amount of hours working on minimum wage that can afford a two bedroom apartment is 70 hours per week, while the more 'attractive' states, like California, Florida, and New York require over 88 work hours per week. If you're wondering, there are only 168 hours in a week" (Plafke 2012)
In addition to the Keynesian argument in support of the minimum wage there is also the efficiency wage argument which states that "businesses may take steps to improve production processes, workplace training etc. If they know that they must pay at least the statutory pay floor" which also improves productivity and has a stimulating effect (Riley, 2012)
But a raise is much more overdue than that. If we look at the minimum wage 44 years ago, and simply adjust it for inflation, it would be more than $10 today" (Weisbrot 2012)
When doing so, the Commission must have regard to the need to maintain an appropriate balance between the objectives of forestalling excessively low wages and minimizing the loss of low-paid jobs and to sustain Hong Kong's economic growth and competitiveness." (Lovells, et al
If the minimum wage is increased without a corresponding increase in worker productivity, then more workers at the low end of the wage scale become unprofitable. The predicted result is a decrease in demand for such low end workers (Henderson, 2006)
In many parts of the nation -- current recession notwithstanding -- even fast food outlets must pay higher than the minimum wage to attract workers. Companies that benefit in other ways from higher wages are already paying those wages (Krugman, 1998) For workers, an increase in the minimum wage means better wages for most
Cons to Raising Minimum Wage Just as there are good reasons to raise minimum wage there are also reasons that it should remain the same. The largest one of these is the fact that every time minimum wage goes up it is not long before prices also rise (Brown, 1988)
However, there are cons that will be discussed in the next section that relate to this raising of money. Another good reason to raise the minimum wage is that these individuals that now have more money will be inclined to spend that money on more goods and services which will help businesses and the struggling economy (Burkhauser, Couch, & Wittenburg, 1996)
This is a commonly accepted view by most economic experts. According to a 1978 article in American Economic Review, 90% of the economists surveyed agreed that the minimum wage increases unemployment among low-skilled workers (Kearl, J