Minimum Wage, Maximum Impact

[level_head]

I was challenged in another forum recently because I had indicated that fewer than 5% of the workforce was at minimum wage. She had heard differently:

I heard earlier this week on the radio that the $10.10 hourly proposed minimum wage would affect 28 million people. That sounds like a good deal more than the 5% of the workforce …  According to the

Comments

[torakiyoshi]

Permission to share, sir?

[level_head]

Always.

===|==============/ Keith DeHavelle

[torakiyoshi]

Thank you. :)

[hbar98]

I also wonder that, if such an increase was passed, would this cause employers to be more picky with new hires? What I mean is this: if I have to pay a higher wage to a new employee, would I hire some kid with no experience, or someone who has even a modicum of training? Would this cause those with no work experience to be passed over even more?

[level_head]

It would. I did exactly that sort of hiring decision-making since 1971, and have hired thousands over the years, perhaps a third to a half at minimum wage. (To be fair, this was largely delegated in later years for such entry-level positions, but I set policy.)

There is a strong desire to help young people get started. But creating strong incentives not to do so is counterproductive - assuming that the goal is increased employment.

Of the 1.6 million at current minimum wage, 1.1 million are 19 years old or less. I started, at minimum wage, when I was 12. I'd have never gotten the chance if wages made the position attractive to someone older, for that decision was easy for my potential bosses. As it was, they could pick me, and afford me, and it worked out.

And, like many or most of the folks at current minimum wage, I had tips to augment my income. It didn't take long for me to learn to give excellent service; my tips were larger than my wages.

===|==============/ Keith DeHavelle

[ccdesan]

That US Bureau of Labor Statistics article doesn't exist. Do you by chance have a mirror?

[level_head]

Hah! That CNN link was good just days ago!

Here is the underlying BLS article for 2012 stats:
http://www.bls.gov/cps/minwage2012.htm

===|==============/ Keith DeHavelle

[ccdesan]

Thanks kindly for the reference!

I wonder if people get tired of these - 11 May - 30 May 02014

[livejournal]

User silveradept referenced to your post from I wonder if people get tired of these - 11 May - 30 May 02014 saying: [...] in indirect methods, and that those who will be harmed by minimum wage increases are larger still [...]