Pros And Cons Of Minimum Wage
The Minimum Wage Debate
May 3, 2013
Economic Consequences of Policy Analysis/Spring 2013
Alohalani Pickett
Ayo Wilson
Franklin Johnson
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Background
Minimum wage laws set legal minimums for the hourly wage paid to certain groups of workers (Gorman). Minimum wage laws were invented in Australia and New Zealand with the purpose of guaranteeing a minimum standard of living for unskilled workers. In the United States, workers are generally entitled to be paid no less than the statutory minimum wage. In the United States, amendments to the Fair Labor Standards Act have increased the federal minimum wage from $.25 in 1938 to $7.25 in 2013. Some states and municipalities have set minimum …show more content…
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
May 3, 2013
Economic Consequences of Policy Analysis/Spring 2013
Alohalani Pickett
Ayo Wilson
Franklin Johnson
-------------------------------------------------
Background
Minimum wage laws set legal minimums for the hourly wage paid to certain groups of workers (Gorman). Minimum wage laws were invented in Australia and New Zealand with the purpose of guaranteeing a minimum standard of living for unskilled workers. In the United States, workers are generally entitled to be paid no less than the statutory minimum wage. In the United States, amendments to the Fair Labor Standards Act have increased the federal minimum wage from $.25 in 1938 to $7.25 in 2013. Some states and municipalities have set minimum …show more content…
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