Skip to comments.Punished By Minimum Wage
Posted on 05/10/2011 5:11:29 PM PDT by Kaslin
As if more proof were needed about the minimum wage's devastating effects, yet another study has reached the same conclusion.
Last week, two labor economists, Professors William Even (Miami University of Ohio) and David Macpherson (Trinity University), released a study for the Washington, D.C.-based Employment Policies Institute titled "Unequal Harm: Racial Disparities in the Employment Consequences of Minimum Wage Increases."
During the peak of what has been dubbed the Great Recession, the unemployment rate for young adults (16 to 24 years of age) as a whole rose to above 27%. The unemployment rate for black young adults was almost 50%, but for young black males, it was 55%.
Even and Macpherson say that it would be easy to say this tragedy is an unfortunate byproduct of the recession, but if you said so, you'd be wrong.
Their study demonstrates that increases in the minimum wage at both the state and federal level are partially to blame for the crisis in employment for minority young adults.
Their study focuses on 16-to-24-year-old male high school dropouts, understandably a relatively inexperienced group of labor market participants.
Since minimum wage laws discriminate against the employment of the least-skilled worker, it shouldn't be surprising to find 16-to-24-year-old male high school dropouts its primary victims.
Among the white males, the authors find that "each 10% increase in a state or federal minimum wage has decreased employment by 2.5%; for Hispanic males, the figure is 1.2%
(Excerpt) Read more at investors.com ...
Make it illegal NOT to have a HS diploma!
That is ridiculous. I have a HS Diploma, it didn’t help me one bit.
We can tell. ;-))
On a lighter note, paying people what they are worth sho' nuf gonna knock a lot of people off their pedestals.
No, my point was you only can and must encourage kids to stay in school and get their HS diploma. But you should not make it against the law if they don’t
Work experience is so important and starting young just opens the door. It doesn’t matter if you have a 4.0, you will get so much more consideration if you have already held down a job.
My granddaughter just got hired by the school district for the summer out of over 50 kids who applied. Her parents have also told her that she needs to work through college even if she gets scholarships.
It is sad that many young people won’t have that leg up the ladder because an idiot teenager is not usually worth 8 bucks an hour but if they are they will work their way up quickly.
When has minimum wage been a support system for mature adults and thier families?
Yeah, and maybe instead of k-12 they should start more vo-tech types of training.
And if they start paying people for their worth, “wage DOI- wage dependent on incompetence” there be some poli’s out there owe me some money. Make that A LOT of money.
Make it illegal NOT to have a HS diploma!
If you make having HS diploma a law it will be worth nothing. Never mind. HS diploma is already worth nothing. Soon a bachelor degree will be worth nothing.
I agree completely.
The best way to sabotage chances for upward mobility of a youngster from a single-parent household, who resides in a violent slum and has attended poor-quality schools is to make it unprofitable for any employer to hire him.
The way to accomplish that is to mandate an employer to pay such a person a wage that exceeds his skill level.
Imagine that a worker's skill level is such that he can only contribute $5 worth of value per hour to the employer's output, but the employer must pay him a minimum wage of $7.25 per hour, plus mandated fringes such as Social Security, unemployment compensation and health insurance.
So it's not really $7.25 an hour after fringes -- it's more like $10 or even $12. Minimum wage laws are destructive and stupid. Yet another example of how our government now interferes directly with individual prosperity. Remember too that it is now poising to interfere directly with every American's access to medical care. Government is the problem.
“The unemployment rate for black young adults was almost 50%, but for young black males, it was 55%.”
Not to worry.....they’re on food stamps. They’ll keep up their strength, so as to be able to vote the mooselimb back into office.
HUNGER is a GREAT motivator!
No more food stamps; but a ‘volunteer’ run kitchen on every block!
Maybe someone should dig a big ditch from somewhere along the Mississippi River down to Texas.
Ease some flooding up around Tennessee and help with the drought in Texas.
except of course usions that peg their prevailing wage to the fed min...
I’ve now witnessed parents donating to non-profits and charities with the condition that their child be hired for an internship. The parent is in essence paying the child’s salary, but the non-profit is the employer - and the pay off is a “job” that goes on the resume.
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