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Location: Live:Downtown Phoenix, AZ/Work:Greater Los Angeles, CA
27,606 posts, read 14,604,784 times
Reputation: 9169
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Quote:
Originally Posted by MPowering1
You sure do. If someone is a bookkeeper in a small business and taking in the money, doing deposits, etc. and making $18/hour - you can bet that job is not worth just $3.00 an hour more than the unskilled laborer.
We just had a $1.95/hr min wage increase here in AZ as a phase up to $12/hr, and no one else's wages went up.
We just had a $1.95/hr min wage increase here in AZ as a phase up to $12/hr, and no one else's wages went up.
There are exceptions to everything - you cannot apply one situation to all situations. Not to mention, you're talking an increase of less than $2.00 which isn't always going to push a minimum wage earner that close to other, more skilled, hourly employees.
I just provided you with an example where the company will be forced to raise salaries beyond those making minimum wage if the rate goes up.
It's common sense. If clerk A was making eight dollars more than the unskilled laboror making minimum wage, and is suddenly making only $3 more, you don't think that's going to be a problem for clerk A?
If someone works two jobs, 80 hours a week for $7.25 and then get $15 an hour and work 40 hours a week instead to spend more time with family, thats a 50% decline in worked hours. You are assuming that every reduction in worked hours is the result of employers cutting staff and hours.
Low wage workers took a 6.1% loss in income. This was not just voluntary choices to work less hours:
Quote:
Using data in Table 3, we compute that the average low-wage employee was paid $1,897 per month. The reduction in hours would cost the average employee $179 per month, while the wage increase would recoup only $54 of this loss, leaving a net loss of $125 per month (6.6%), which is sizable for a low-wage worker.
But the key quote is this one:
Quote:
Table 3 panel A shows that over the same two-year time period, the number of jobs paying less than $19 per hour fell from 92,959 to 88,431 (a decline of 4,528). Measuring hours worked at low wages rather than employee headcount, the table shows a 5.8 million hour reduction at wage rates under $13, and a 1.7
million hour reduction at wages under $19.
...
Over this same period, overall employment in Seattle expanded dramatically, by over
13% in headcount and 15% in hours. Table 3 makes clear that the entirety of this employment
growth occurred in jobs paying over $19 per hour.
That alone means that employers have cut staff and hours for low wage workers.
(Note: Workers under $13 lost 15,387, but that was an intended intent of the policy and reflects an increase in wages as much as a cut in positions. The $19/hr number is used because that is the cutoff where no ripple effects can be observed from wage increases in lower paying jobs.)
But the key takeaway is still this:
Quote:
This implies that theminimum wage increase to $13 from the baseline level of $9.47 reduced income paid to low-wage employees of single-location Seattle businesses by roughly $120 million on an annual basis.
That study is food service workers only.
The UW study is all low wage workers. (And the UW study addresses why using food service workers only missed the effects across all low wage industries, retail in particular.)
Location: Live:Downtown Phoenix, AZ/Work:Greater Los Angeles, CA
27,606 posts, read 14,604,784 times
Reputation: 9169
Quote:
Originally Posted by MPowering1
There are exceptions to everything - you cannot apply one situation to all situations. Not to mention, you're talking an increase of less than $2.00 which isn't always going to push a minimum wage earner that close to other, more skilled, hourly employees.
I just provided you with an example where the company will be forced to raise salaries beyond those making minimum wage if the rate goes up.
It's common sense. If clerk A was making eight dollars more than the unskilled laboror making minimum wage, and is suddenly making only $3 more, you don't think that's going to be a problem for clerk A?
It could be, but then clerk A could just pound sand if he can't find someone willing to pay him more than what he's already getting (I had an ex employer tell me that in so many words when I quit after a pay cut)
(Also, the Berkeley study limited employment changes to 1 quarter after the policy went into effect. As you can see on page 16, this missed more than half of an enormous decline in employment in limited service restaurants that began a quarter before the policy went into effect and continued through 2015 then rebounded q1 2016 as limited service restaurant employment supplanted full service restaurant employment immediately after the latest wage increase.)
It could be, but then clerk A could just pound sand if he can't find someone willing to pay him more than what he's already getting (I had an ex employer tell me that in so many words when I quit after a pay cut)
Well maybe clerk A needs a law to receive fair pay that stupid joey bag a donuts has going for him.
There are simply fewer low-wage jobs because tech is eliminating them, but keep pushing your minimum wage kills jobs narrative.
There are 4 factors affecting the low wage earners:
1. Minimum wage
2. Automation
3. Globalization
4. Illegal immigrants
What's the leftists' answer? Do more of all of them!
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