This research paper looks at ECON 315 labour economics and the minimum wage. The federal minimum wage was established in 1938 by the Fair Labor Standards Act. Initially set at 25 cents an hour, the wage has been raised periodically to reflect changes in inflation and productivity. From September 1997 to the beginning of 2007, the local living wages stood at $5.15 an hour. Its real value has, however, declined steadily from 40 per cent to a mere 30 per cent. Adjusted for inflation, the wage was lower at the beginning of 2007 than at any time since 1955. The effect of a minimum wage depends, in part, on whether the labour market is competitive or not. Wage’s opponents argue that ECON 315 labour economics and the minimum wage reduce employment, especially among low-skilled workers.
THE ECONOMIC IMPACT OF LOCAL LIVING WAGES
ECON 315 labour economics and the minimum wage has had astounding growth. The modern living wage movement was born in Baltimore in 1994 when the city passed an ordinance. The ordinance required firms to pay employees a rate above the minimum wage while working on city contracts. Since then, over 120 communities have followed suit, some setting wage floors more than twice the federal minimum wage. Public policies have exacerbated the problem from the federal level to the local level. Since the early 1980s, the federal government has generally neglected the minimum wage. The astounding growth of the local living wages movement is a response to Americans who cannot make ends meet.
economic impact of local living wage
ECON 315 LABOUR ECONOMICS AND GRADUALLY RAISING THE MINIMUM WAGE TO $15 WOULD BE GOOD FOR EVERYONE
ECON 315 labour economics and the minimum wage are translated into the living standards of workers. Raising the national minimum wage is well overdue. Workers today are paid the federal minimum wage of $7.25 an hour. The wages were 29 per cent less than their counterparts 50 years ago. Increasing the minimum wage to $15 by 2024 is an important corrective to our failure of raising minimum wages. The increase would ensure that the country’s labour productivity gains are translated into higher living standards for low-wage workers. The proposal does not raise the minimum wage immediately but instead increases it for six years. The gradual increase of the local living wages is to enable employers to adjust to the new standard.
gradually raising the minimum wage to $15 would be good for everyone
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