When the minimum wage was roughly half the average wage, in the late ’s, full-time, year round minimum wage earnings for one worker lifted a family of three from poverty. Today, a minimum wage worker lives on $3, less than the poverty line – and the minimum wage is worth only 37 percent of the average wage (Owens, ). We will write a custom sample essay on The Minimum Wage Debate specifically for you for only $ $/page. Order now This paper will examine President Obama’s proposal to increase the minimum wage by evaluating the history of the minimum wage, the people affected by the minimum wage, the economic way of thinking, and the writer’s. Essay on Minimum Wage Should Not Be Raised - In the United States of America, the federal minimum wage was fixed at $ per hour as of July 24, (“Minimum Wage”). Since this date, there has been much controversy about this rate of pay. This is a sample minimum wage debate essay provided by students for free. Use this paper to come up with a custom minimum wage essay thesis, research paper, essay outline. If you need more help or need to buy a research paper online, click on order now to buy an original paper from our experts. Minimum wage. Minimum wage is defined as the lowest hourly, daily or monthly salary that employers may legally pay to workers. Minimum wage is the lowest amount where workers may sell their services which in term are known as the market floor for wage.
- The Minimum Wage Debate
- minimum wage Essay Examples
- Minimum Wage Essay- Research Paper
- Minimum Wage Debate
The obvious solution to this concern is to redefine the wage structure politically to achieve a socially preferable distribution of income. Thus, minimum wage laws have usually been judged against the criterion reducing poverty Wikipedia. Minimum wage laws were also proposed as way to control the increase the spread of sweat shops in manufacturing industries.
Sweat shops employed large number of women and young workers, paying them substandard wages. The sweatshop owners were thought to have unfair bargaining power over their workers, and a minimum wage was proposed as a means to make them pay their workers fairly.
Eventually, the focus changed to helping people, become more self-sufficient. Today, minimum wage laws affect workers in most low-paid fields of employment Wikipedia, There is great disagreement as to whether the minimum wage is effective in attaining its goals. From the time of their introduction, minimum wage laws have been controversial politically, and have received much less support from economists than from the general public.
Despite decades of experience and economic research, debates about the costs and benefits of minimum wages continue today. However, the oft-stated assertion that recent research fails to support the traditional review that the minimum wage reduces the employment of low-wage employment of low-wage employment is clearly incorrect.
Their findings resulted in studies that provide evidence of positive employment effects of minimum wage, especially from those studies that focus on the broader groups rather than a narrow industry for which the competitive model predicts disemployment effects. They also found that studies that focus on the least-skilled groups provide relatively overwhelming evidence of stronger disemployment effects for these groups. Also, John Schmitt reviews evidence on eleven possible adjustments to minimum-wage increases that may help to explain why the measured employment effects are so consistently small.
He states that the most important channels of adjustment are: His report found that little or no employment response to modest increase in the minimum wage and evidence on a range of possible adjustments to minimum-wage increases that may help to explain why the measured employment effects are so consistently small Schmitt, As mentioned, online articles from Newsweek, Wikipedia, and Deseret News provided background information as well as opinions that determined the direction in which the writers would approach in this paper.
Although workers under age 25 represented only about one-fifth of hourly paid workers, they made up half of those paid the federal minimum wage or less. Among employed teenagers paid by the hour, about 21 percent earned the minimum wage or less, compared with about 3 percent of workers age 25 and over See Table I.
About 6 percent of women paid hourly rates had wages at or below the prevailing federal minimum, compared with about 3 percent of men. Of minimum wage earners overall, 67 percent are women, and 33 percent are men. The percentage of workers earning the minimum wage did not vary much across the major race and ethnicity groups. About 5 percent of white, black, and Hispanic hourly-paid workers earned the federal minimum wage or less.
Among Asian hourly paid workers, about3 percent earned the minimum wage or less. Among hourly paid workers age 16 and over, about 10 percent of those who had less than a high school diploma earned the federal minimum wage or less, compared with about 4 percent of those who had a high school diploma with no college and about 2 percent of college graduates. Part-time workers persons who usually work less than 35 hours per week were more likely than their full-time counterparts to be paid the federal minimum wage or less about 11 percent versus about 2 percent.
About 7 in 10 workers earning the minimum wage or less in were employed in service occupations, mostly in food preparation and serving related jobs.
Among the states, Mississippi, South Carolina, Tennessee and Oklahoma had the highest proportions of hourly-paid workers earning at or below the federal minimum wage about 6 percent. The percentage of workers earning at or below the Federal minimum wage was lowest 1 percent or less in Alaska, California and Oregon Rampell, Employed wage and salary workers paid hourly rates with earnings at or below the prevailing federal minimum wage by selected characteristics, annual averages Characteristic Number of workers in thousands Percent distribution Percent of workers paid hourly rates Total paid hourly rates At or below minimum wage Total paid hourly rates At or below minimum wage At or below minimum wage Total At minimum wage Below minimum wage Total At minimum wage Below minimum wage Total At minimum wage Below minimum wage AGE AND SEX Total, 16 years and over 75, 3, 1, 1, Persons whose ethnicity is identified as Hispanic or Latino may be of any race.
These data will not sum to totals because full- or part-time status on the principal job is not identifiable for a small number of multiple jobholders.
The Minimum Wage Debate
Full time is 35 hours or more per week; part time is less than 35 hours. Data exclude all self-employed persons whether or not their businesses are incorporated U. The direct, immediate effect of increasing the minimum wage is an intended one, but secondary effects, or unintended consequences also present themselves.
The law of demand states that the quantity demanded will decrease as the price of the good increases, with all other variables holding steady at constant.
minimum wage Essay Examples
In this case, according to the law of demand, an increase in the price of labor, the minimum wage, will cause a decrease in the amount of available positions in the job market. The higher minimum wage will draw more workers into the market, but simultaneously, the higher price of labor will cause employers to offer less employment opportunities for lower skilled workers.
Opponents of this viewpoint argue that an increase in the minimum wage will have a more positive secondary effect: The conservative side of the argument echoes the law of demand. The true test of an economic theory is its ability to accurately predict, another guidepost of economic thinking.
The law of demand is a strong one, but considering the changes in other economic variables, it cannot be considered absolute. In New Jersey, the number of fast food jobs actually increased after an 18 percent increase in the minimum wage was instituted White, Meanwhile, worker productivity has doubled.
If the current minimum wage seems low, raising it would cost jobs.
Minimum Wage Essay- Research Paper
And while there are dissenters, the great preponderance of the evidence points to little if any negative effect of minimum wage increases on employment Krugman, It is also important to understand how the minimum wage interacts with other policies aimed at helping lower-paid workers, in particular the earned-income tax credit.
The tax credit is also good policy. But it has a well-known defect, some of its benefits end up flowing not to workers but to employers, in the form of lower wages.
An increase in the minimum wage helps correct this defect. It is also good politics; a wage increase is supported by an overwhelming majority of voters…. We will learn that an increase in wages will restore strength to the economy. We will see room that even more increases in wages will improve the economy. Social costs of labor will be better covered and the economy will work better.
The real job creators are the bottom 90 percent, including those right at the bottom who would benefit from a minimum wage—consumers, those who spend nearly all of their income on real goods and services and hoard very little of it.
And truth be told, without spending there are no sales; without sales there are no profits; without profits there is no demand for workers; without demand for workers there is no job creation; and without job creation there is no recovery. Overall raising the minimum would help some family live a little better and not stress as much with paying for food and utilities.
It will help build a sense of pride and self-esteem… after all is this not the land of opportunity Krugman, The minimum wage makes it harder for unskilled workers to gain the labor market experience and on-the-job training that would raise their productivity and future pay. Unskilled workers are less attractive with a higher minimum wage because they produce less per hour and their hiring diverts more senior workers from revenue producing activities to training and supervision Shemkus Firms will only invest in human capital if they expect to receive a return on their investment.
Firms will not pay for general skills if workers are likely to leave before firms recoup their investment costs. Turnover is even higher for teen age workers.
Young workers must therefore pay for the general often informal training they receive by accepting a lower wage Shemkus, The good news is that once these workers have some experience and training they can command a higher wage. A higher minimum wage encourages firms to hire already trained and experienced workers, eliminates some opportunities for experience and training, and puts an even bigger burden on our vocational schools to train unskilled workers.
The effects on employment rates would be exactly the opposite of those supporters foresee. A higher minimum wage, they claim, would be too heavy a burden on employers, especially small business owners. And those employers, in turn, would be unable to hire as many people — an undesirable result when unemployment continues to hover at about 8 percent Shemkus, When legislators raise the price of low and unskilled labor, it is usually low- and unskilled laborers who end up paying the price, increasing the minimum wage has not proven to be effective at lowering the poverty rate.
Multiple studies have demonstrated little to no relationship between a higher minimum wage and reductions in poverty. So it looks like the minimum wage will probably be staying right where it is for some time to come Shemkus, We recommend continuing to allow individual cities and states to mandate the minimum wage deemed necessary for the citizens of their jurisdiction. The Department of Labor states that there are 4 states that have a minimum wage set lower than the federal minimum wage and 19 states plus DC with minimum wage rates set higher than the federal minimum wage.
There are 22 of the states that have a minimum wage requirement that is the same as the federal minimum wage requirement. The remaining states do not have an established minimum wage requirement D.
With this said, the Federal minimum wage law will always supersede state minimum wages where the federal law minimum wage is greater than the state minimum wage. In those states where the state minimum wage is greater than the federal minimum wage, the state minimum wage prevails D.
Minimum Wage Debate
This recommendation would protect the minimum wage employees in less than statutory minimum wage states, while granting the federal government a reprieve until the economy get back on its feet. This linkage would increase the minimum wage each year. The economy in these states has not been affected by the increase each year. Retrieved April 4, , , from http: Retrieved April 30, , from http: Characteristics Of Minimum Wage Workers: Retrieved April 12, , from http: Who is affected by a higher minimum wage?
Retrieved April 17, , from http: Center for Economic and Policy Research. Wascher, David Neumark and William. Minimum Wages And Employment: The great minimum wage debate: Retrieved March 27, , from http: Minimum wage in the United States. Retrieved April 15, , from http: Retrieved April 14, , , from How to cite this page Choose cite format: