About the Minimum Wage

Employees receiving the minimum wage are often young and work in companies that maintain a few cents per share after spending. As the minimum wage rises, these employers are obliged to deliver costs to consumers at higher prices or reduce costs elsewhere - as a result the number of full services decreases and customer self Service will increase. Therefore, employees with lower skills and less experience can achieve less time and work.

Growth of minimum wages does not lead to poverty reduction. The award-winning investigation states that the minimum wage has been raised between 2003 and 2007, and there is no evidence that the rise in these minimum wages has reduced the poverty rate. New research by the University of California at Irvine and economics from the National Economic Research Bureau found that the minimum wage increase over the past 30 years did not reduce the poverty rate of poor communities. A small number of employees raising wages may benefit from rising wages, but the unemployed is obviously getting worse.

Employees starting with the minimum wage will not be trapped there. According to the survey, most employees who started with minimum wages turned to higher wages in the first year.

The majority of the economist's debate about minimum wage is not whether it is tax or not, whether the lowest wage lowers the employment rate of low-wage workers who is a group of workers the minimum wage should aid is there. Occupation still does not solve the scale of the impact of the change in minimum wage on employment. This is the subject of exhaustive research and professional scholars use a strict approach to produce a wide range of estimates including zero, but most studies have concluded some sort of employment losses and conclusions did. If the national minimum wage has increased from $ 7.25 per hour to $ 10.10 per hour, I will use the CBO February 2014 study estimate of the impact on total employment. CBO estimates that a 10% increase in minimum wage will reduce the employment rate of low-skilled workers by about 1% (see page 25 of this document).

What is the data on the impact of minimum wage on employment? Most young studies showed that minimum wage reduces employment: by every 10% increase in minimum wage, youth employment is reduced from 1% to 2%. Most of the research on minimum wage covers young people because they are the only group affected by the minimum wage, so its impact becomes more obvious. David Card and Alan Krueger conducted extensive research to show that employment does not decrease with minimum wages. For example, we conclude that even though the minimum wage is raised in 1990 and 1991, states with most low-wage workers did not suffer greater unemployment (Card and Krueger 1995). However, in the study of the federal minimum wage increase rate between 1996 and 1997, it is shown that the unemployment unemployment rate is higher in the state where the proportion of low-wage workers is higher (Wessels 2007).