Ball State University economist Mike Hicks believes the higher minimum wage has cost the state 20,000 to 25,000 jobs, and should be tweaked to give entry-level workers a better shot at jobs.
During a typical recession, the number of minimum wage jobs rises as companies shift more work to part-timers. Not this time, though, at least for teenagers. When the latest increase in the minimum hit in July last year, rising to $7.25 an hour, teenage employment actually plunged.
At a practical level the minimum wage is usually meaningless. Even the worst jobs pay well over the minimum. However, that doesn't necessarily hold true in recessions, particularly in extreme rural areas or in inner cities, Hicks says. There, an abundance of teenagers and a scarcity of jobs has eroded market demand below $7.25. So, businesses cut back hiring.
Hicks thinks the minimum
wage should be tiered in order to give teens a better shot at learning work skills.
What are your thoughts about the minimum wage? Do you agree with Hicks that it has shut teens out
of the job market during the recession? Is there merit in a tiered system?
Back to Top
IBJ Conversations
10 Comments
Add Comment
If you want to make more...find something you can learn to do that will qualify you for a job that pays a higher salary. It's all on your shoulders....not anyone else's to take care of you and make sure you get that high def tv you think you deserve. What is the next step....making everyone in the country earn the same thing regardless of their gumption or contribution...so we can all be "equal"?
The US Government has turned into a pile of rubbish led by a worthless congress.
Not just that but what about the tip based employees? they make less than minimum wage unless they provide customer service. even at that, some days the customer flow is so low that it will be hard to justify even coming into work. I am all for customer service, but when some management provides conditions which weigh the employees down and the customers do not tip at all, it makes it hard for a Tip-based employee to get excited about their job and show that they care (even if they don't).
For those who don't like the system for what it is now, there are three options. 1) Get into Politics and change things. 2). Get into the market (as an employee) and change things. or 3) stop complaining like a winy little teenage brat. ---basically go out there and make a change or stop complaining.
The retailer that I use to work for did such payment plan. One such employee looking to advance themselves in improving the world around them (working harder in the job and/or working hard in college/tech school) had a slight pay increase over the employees who just wanted to get by. Right or Wrong, it was a reward system of - help your business and your business will help you-. I have since moved on, graduated college, had 2 promotions there and moved into my career choice in a different company, but left them on good terms for if I have to go back (in worst conditions of losing everything and needing to go back for any type of work).
Really.... this is the crux of just about everything that is discussed on this blog. People need to take responsibility for their own actions, jobs and businesses ... and have the freedom to fail or succeed without the government stepping in and messing the whole system up for us all. When we all wake up and stop pushing for overall mediocrity and put a pretty bow on it by calling it â??equalityâ??.
Who wants to work for slave wages?