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Wages For Youth Workers Are To

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I don't agree that wages for youth workers are too low. I think so because teenagers don't need plenty of money because they usually live with their parents and it learns them that it takes a lot of work to earn a little. The youth of today can already be happy that they get money for what they are doing because earlier this century children always used to help older people or their own parents with their jobs. Teenagers don't get paid as much as adults do because they simply don't need the money. Adults work to be able to live a life and not to buy CD's, books, piercings and other things young people would buy.

Teenagers usually live with their parents and their parents give them food, a bed and more so youth has to think more about their parents before they start complaining about their low wages. It is a good thing that youth wages are lower than adult wages because like that teenagers learn how hard it is to earn some money and how to spend it in a good way. Kids often think way too easy about their parents money and they have to learn how hard it can be to earn money. The best job to realise how hard it is to earn money has got to be paper running because you spend a few hours folding the papers and after you have to deliver them for a few hours and all of that only for around four dollars. Young people should be happy to have a job because in some countries people need jobs real badly and the wages are even lower than our youth wages. So the teenagers should think about other people's situations first before they start complaining about something which is really not important. So, youth wages are actually not too low at all because youth doesn't need the money, it is good for them to learn how to earn and spend money. And teenagers should also be happy with their job because this is not the case in every single country of the world.

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3 March 2014. Author: Criticism

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Foreign Workers, Low Wages Essay - 1099 Words

Foreign Workers, Low Wages

Is it fair to workers of developed countries when companies shift work to lower wage countries?

The main reason companies shift work to lower wage countries is to reduce operating costs. Low labour, production, and energy costs in countries such as China, Japan, India, and Mexico is causing companies to shut their factories within the United States and open new factories in those foreign countries. This leads to the loss of jobs within the United States, a lower standard of quality, and resentment by those who are living within the United seeing more and more of their jobs going overseas. In 1994, NAFTA (North American Free Trade Agreement) was passed by then President Bill Clinton. His goal was to open the trade routes to all countries. Unfortunately, it led to many plants moving across the borders to Canada and Mexico. While outsourcing had begun in the 1980s, it grew by leaps and bounds in the latter part of the 1990s. Jobs went overseas to China, Japan, and India and the economy began to falter as American's lost their jobs and suddenly faced living on minimum wage as higher paying jobs went to these other countries. By looking at the average annual salaries in these other countries, it is easy to understand why companies find it appealing to outsource their business. Especially in China where the average yearly salary is significantly lower than their American and European counterparts. • China - $1,290

• India - $14,500
• Japan - $17,000 to $50,000 (this depends on the region) • Mexico - $9,000 to $16,000 (this depends on the region) Outsourcing U.S. jobs to these areas are allowing many formerly poor areas to increase their standard of living. Meanwhile, citizens of developed countries feel it is taking away from many families in those developed countries. Is it fair? Depend on where you live, it is not fair to the workers of developed countries when companies shift work to lower wage countries. However, companies are.

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Does Trade with LowWage Countries Hurt American Workers Paper by

Does Trade with Low-Wage Countries Hurt American Workers?

SEQ CHAPTER \h \r 1 Does Trade with Low-Wage Countries

Hurt American Workers

This brief compares the views of on both sides of the Free trade divide. between those who hold that globalization helps both American and third world workers. and those who hold that such trade policies exist for any by elites

This brief will look at some of the more important works on the question of American wages and global trade. As a matter of course. it seems that the support for global free trade is a consensus

shared by elites. the major banks and economists. while the rejection of such policies comes from others not so gifted. The literature on this subject is vast. but this generally holds that global free trade is harmful to American workers. but with several important caveats

Stephen Golub in his 1998 work on globalization holds that the movement to low wage states b American capital has nothing to do with wages. He does not say what it has to do with. Golub 's thesis is based on the concept that low wages are normally correlated with low productivity This means that the global labor force is generally equal in terms of unit cost. since the low wages are more than made up for in terms of a lack of productivity. Again. the question presents itself. what is the draw in terms of third world investment if not wages

Golub holds that if wages were the prime.

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Study Of Minimum Wage Work Economics Essay

Study Of Minimum Wage Work Economics Essay

Published: 23rd March, 2015 Last Edited: 23rd March, 2015

This essay has been submitted by a student. This is not an example of the work written by our professional essay writers.

The basic fact that labour demand slope downward whenever we examine the effects of imposing a wage rate change on a group of workers or industry, wage subsidies and any movements in minimum wage all affect the quantity of labour that employers want to hire. The supply of workers is normally considered to be positively related to the nominal wage. When wage increases, labour supplied increases. However, the amount of labour demanded is believed to be negatively associated to the nominal wage, firm demand less labour as the wage increases, due to its downward sloping properties

The traditional view states that labour market as perfectly competitive. Under perfect competition, starting with an easy economic textbook example, holding other things else constant, if one price of goods went up, the consumer demand of that product would fall. Similarly, workers' wage level would go up in response to the enforcement of minimum wage, employers would rather occupy fewer workers and unavoidably ended up with an increasing unemployment rate. In this competitive labour market, workers' marginal productivity could be decisive in determining their wages. For instance, if the monthly minimum is $5000, any workers' productivity which is below $5000 would inevitably loss the job, some or near the productivity of $5000 might be considered to save the job as some workers has already been sacked, the remaining workers would work harder and try to keep the productivity over $5000.

Any workers who are working at minimum wage level are hugely important to the families' gross income. The majority of employees who are employed at minimums level neither totally poor nor the only income supply for their families, however the low wage workers' income show significant effects on the economic well being. Between the 1970s and 1980s, the economic assumptions investigating the connection between the employment and minimum wage fundamentally consisted of the time series analysis. It stated that a momentous depressing growth of employment from the results of increasing the minimum wage. These results contributed to the plain competitive model of the labour market. Since employers contain perfect information about potential hires and all workers, hiring and dismissal is totally costless. Correspondingly, people who are looking for jobs contain perfect information for the potential employers, losing a job or redundancy are totally not an issue here.

In addition, the model believes that staff and workers have fundamentally infinite admission to other possible working options. If employers lower the wagers by 1%, all workers would immediately leave, by using the equivalent reason, employers would get no advantage by using a higher salary rather a minimum wage to employ any workers. Therefore, any minimum wage which is higher than the equilibrium market clearing wage unavoidably contribute to reduce in employment.

In this thesis, the progress will go through the economic effect on the retail and youth on the fast food industry, particularly on the low-skilled youth labour, categorized in two groups, age 15-19 and age 20-24. Furthermore, special attention has been paid on women workforce, as female labour workforce has been one of the most important trends as a raising labour participation are occupied by women.

The purposes of setting up the minimum wage:

  • Reduce poverty
  • Cut down the employers' control on wages
  • Eliminate unfair competition
  • Improve the economy as a whole

The wage gap between the low wage and average wage has been increasing in the past, in some case full time workers can not afford the cost of living, a raise in minimum wage is presumably to have a huge effect on reducing poverty. As the labour market is not in perfectly competitive situation, hence the bargaining power is controlled by the employers. This will inevitably lead to welfare loss on workers, particularly on some workers with low-productivity. Protecting these workers from being unfairly mistreated, a minimum wage law is therefore established. An increasing wage can make them live better and their families, they can at least afford the basic necessities, the local cost of living, e.g. rent, the price of food, transportation, child care and other necessities would vary a great deal. Economic improvement needs a higher productivity from workers, a phenomenon illustrated by the Fiscal Policy Institute, ‘Henry Ford effect', since employers get higher wage, this results an raise in disposable income and encourage spending in the economy.

With the analysis of U.S Current Population Survey 2005, discloses that a mainstream of adults who work full-time and supply the main source of income to their family would be hugely influenced by the raise in minimum wage. If the minimum wage was increased to $7.25 per hour, 14.9 million workers would experience the wage rise. The employment prospect of low skills employee has seldom reached higher than they are at the moment, the job loss rates also have achieved hardly even been lower. Does an increase in minimum wage cause job losses? Is this higher minimum wage accomplishing their planned beneficiaries? Is employment worst than it would otherwise have been?

2. Related Empirical Work (Theoretical)

Before looking into the impact of a raise in minimum wage, presenting some important past background in related to the minimum wage. The federal minimum wage was a part of the original Fair Labour Standard Act (FLSA) of 1938. It was initially placed on $0.25 per hour and also set standards as regards overtime payment and child labour. The real value of minimum wage has fallen 30% and currently at a lower level than any other year since 1955. In May 2007, an agreement was passed as the federal minimum wage will increase with three incremental steps in 26 months; it is currently placed at $ 5.85 per hour, the second stage will go up to $6.55 per hour in July this year and finally $7.25 in 2009 1. Most states will not feel the heats of the changes as their existing state minimum wage are set higher than the new federal rate.

The minimum wage erosion has caused severe consequences for families, the national minimum wage has never been indexed and only if the legislative changes are enforced. In general, while the federal decided not to raise the wage level, states government would have interfered. Nowadays. almost half of the American live in the states that have enforced minimum wages higher than the federal rate of $5.85. Many American politician campaigners linking the minimum wage to the Consumer Price Index, thereby producing a tiny annual increases rather than a large hikes which likely to be adopted when legislation is enforced. At the moment, Arizona, Ohio, Oregon, Missouri, Montana, Vermont and Washington have all linked their minimum wage to the consumer price index. 2

The main factors which affect the minimum wage are mostly based upon the political situation and any congressional agreement. The rate of the increases varied, e.g. In the 1970s, Minimum wage increased five times, compared with only two times in 1980s. The effect of the minimum wage will totally depend on how many workers have their wages raised by the law and the degree of the mandated increases. These will also see on how many workers are subject to the law and how many of them would have wages below the minimum wage without the law.

1 If an employee is currently working below the old and new minimum wage, he/she is entitled to gain the two separate higher minimum wages. (http://www.dol.gov/esa/minwage/america.htm)

2 As of 1st February 2007, twenty-nine states and the District of Columbia have enacted higher minimum wages. Ten states currently adjust the minimum wages for inflation annually See Table in appendix for updated state minimum wage rates.

In fact, any workers who stay in minimum wage are crucial to their family's gross income. As long as the low income workers need to work to earn all the basic necessities, they must accept the wage due to their limited bargaining power. People of colour, women and persons with relatively low education are more than likely to get involved at a level of minimum wage for an extensive phase of time. A study shows that after people graduated from high school, 15% of women and 16.2% of blacks would be using a minimum of five years that salaried no more than $1.50 beyond the federal wage. (Carrington, Fallick, 2001)

The minimum wage relative to the average wage, 1947-2006 3

Historical record is quite clear to show that a raise in minimum wage increases the wages of the lowest wage workers with no hurting their employment prospects. The minimum wage increase in 1996-1997 could be the prefect example. In this figure, this decline tells us that an increasing space between average and low wage workers, the trend clearly clarify the development of economic variation in US at the last decade. An economist examine the growing wage gap between the middle and low wage female workers by looking at the post 1980 downturn, can be explained in the above figure. 4 (David Lee, 1999).

3 Minimum Wage Issue Guide, EPI, http://www.epi.org/issueguides/minwage/figure2.pdf

4 The minimum wage is currently 33% of the average wage, the lowest since 1949. (Lee, David. Quarterly Journal of Economics. Vol. 114, No.3)

An increase minimum wage is a working woman's concern

An interesting fact is that female participation in the labour market has dramatically increased. In 1970, the female labour market proportion was occupied of 43.3%, after 30 years, this trend reached its economic peak in 2000; the female went up to 59.9%. Minimum wage increase not only helps teenagers, results (Appelbaum, Bernstein, Currie, Hartman, Katz, Markusen, Montgomery, Raphel, Rouse, 2004) show that 75.6% of the female labour who would be the biggest beneficiaries party of being the age of 20 and 85% of women would tend to getting advantages indirectly from an increase are over the age of 20 too.

Due to the massive growth in the women's share in the labour market, special attention has been paid as the minimum wage gets an extra strong effect on the women labour force market for the following reasons. First, since men get paid more than women, a larger proportion of women are likely to be employed near or at minimum wage level, hence, they would inevitably be the most advantageous of reaping benefits from the minimum wage increases. Second, women dominate the low wage market such as retail industry and health care that would directly benefit when the wage is increased.

Although women make up only 48% of labour force in the market, 61% of direct beneficiaries are women. Over 50% of indirect beneficiaries are occupied at a full-time job, as 77% of women work more than 20 hours a week, most disproportionately affected by the wage increase would be those two industries which involves a large fraction of women labour force. There are around 23% of women occupied in the retail trade, although female employees only engaged the industry of 12%. Furthermore, the catering industry also contains a lot of low wage workforces and relatively large proportion of female labour.

Minimum Wage's impact in Eating and Drinking Establishment- US fast food industry

If skilled labour and capital are substitutes for unskilled workers, the outcome of a minimum wage increase will shift out the demand curve for skilled workers and increase both their earnings and employment as business attempt to replace the now relatively more expensive unskilled workers with capital and skilled workers. Also, only those inexperienced and low skilled workers we should expect to see a negative effect from the minimum wage. This expectation has led research into the minimum wage to focus on the demand for teenage workers on employment.

Whenever there is talking about a rising minimum wage, representatives of this industry must state an inevitable employment loss. For teenagers, being low skilled they are most vulnerable, a group that is mostly employed in low wage sector and clearly affected by the minimum wage, there is well-built support that an increase in minimum wage raise wages without reducing either job opportunity or labour supply (Card, 1992) 5. This study is comprehensive as the experiments are based on the response of companies in New Jersey and Pennsylvania state boarder earlier and after following the enforcement of minimum wage.

In the restaurants industry, regularly to be considered as responsive to the minimum wage, Card states that if the minimum wage raise every 10%, teenager's employment will increase by 2.65% to 3.06%. 6 In 1 st April 1992, the minimum wage in New Jersey increased to $5.05, while other states accepted the federal minimum of $4.25. However, the minimum wage raise to $4.25 did not have a significant effect on any employment loss among youths working the fast food industry. 7 Since most of the young adults are earning a wage higher than the teenagers', the effects of increasing minimum wage are relatively insignificant.

Another empirical research found out that a 10% increase in minimum wage, the teenagers' employment declined 1% to 3% and the employment effects of young adults reduced by 0.25 %. 8 (Brown, Gilory and Kohen, 1982). Although the results of young adults come negative, its effects is still insignificant compared with the teenagers.

5. Card and Krueger insisted that no assessable negative impact on employment with the minimum wage. Study shows the increase minimum wage in New Jersey had a very minor, and anything slightly impact on employment. (Card, David and Alan Krueger, American Economic Review Vol. 84, No.4)

6 Minimum wage effects on teenagers (age 16-19) is significantly higher than young adults (age 20-24)

7 Card and Krueger. 1994.‘Minimum Wages and Employment: A Case Study of the Fast- Food Industry in New Jersey and Pennsylvania' American Economic Review. Vol. 84, No.4 (September), pp. 772-93

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