This Study Focuses On How The Minimum-Wage Serves As A

1162 WordsMar 8, 20175 Pages
This study focuses on how the minimum-wage serves as a place for prime age workers, those between the age of 25 and 54, to get stuck. For the purpose of this study, minimum-wage was established as anyone earning less than or equal to $1.00 above the 1997 wage of $5.15, as adjusted by inflation. While minimum-wage was developed as a floor for wages, this study asserts that a worker with one child will be nearly $3,000 below the poverty line even if they work full-time, full-year. It was concluded that many prime-age workers are not likely to move into a job paying above minimum wage if they were in a minimum-wage job to start with; over one third of all low-wage workers remained in that section three years later. Prior to a federal…show more content…
This paper argues that the proper time to adjust minimum wage is right now. To argue this, studies are done that show the target efficiency of the federal minimum wage is near its 25-year peak. These studies also show that the changes in target efficiency are directly related to the workers in poverty and not the non-poor workers. From this, the paper raises the idea that minimum wage increases the employment of low-skilled poor individuals relative to low-skilled non-poor individuals. It also asserts that the decline in teenage employment and general increase in poverty are not the strongest predictors of the target efficiency. This paper asserts that a minimum wage results in a lower employment of youth. 17 countries are pulled from to back up this claim. In the final analysis, the countries are split into four categories: High employment and high labor, high employment and low labor, low employment and high labor, and low employment and low labor. This data set shows that although minimum wage leads to lower employment, it varies by country. This research suggests that policies may have an important influence on the size of disemployment effects due to minimum wage. It also claims that stronger employment protection policies can reduce and even offset the effect of minimum wage on teen unemployment. This paper
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