Australian Minimum Wage Rates and Their Affects on Youth Stakeholder: Fair Work Comission
The national minimum wage is the minimum amount an employee can make that is not covered by an award or an agreement. Different countries set their minimum wage rates to be the minimum amount a person can make in order to survive in however that country’s economy allows. This paper will analyse the ways in which the minimum wage rates in Australia do not benefit today’s youth. It will show how the minimum wage rates contribute to older people missing out on jobs, less of a skill set among young people, and youth homelessness. It will be argued that minimum wage rates should be set at the same rate for people once they have reached the age of adulthood. Young people between the ages of 14 to 17 should also receive an increase in minimum wage rates, so that they may become more financially stable.
In the country of Australia there is a system called “Junior Rates”, which is defined as a proportion of adult minimum wage, that increases every year until the “junior worker” is considered an adult at age 21. (Lewis et al. 1999) The current minimum wage rate starts at $6.03 per hour if you are under the age of 16. It increases every year from $7.74, $9.46, $11.18, $13.51, and $16.00, through ages 16 to 20 respectively. You don’t receive the full minimum wage of $16.37 per hour or $622.20 per week until you are 21 years old.
By setting the minimum wage rates according to age the government is basically saying that young people are not adults, so they don’t deserve adults wages. However, there are many young people that are living adult lifestyles, whether by force or by choice. In the past there has been some concern that raising the minimum wage rates would reduce the amount of young people that are completing high school. (Warren et al. 2008) However, studies have shown that high school completion rates have only been reduced by minimum wage increases if there is a large increase in minimum wage rates. The changes in the high school completion rates have been very modest, and found to only be in states where young people are allowed to drop out of school at 17 years old. (Warren et al. 2008)
There have been discussions in the past of paying young people adult wages once they turn 18 because they are no longer ‘juniors’, but instead young adults. (Lewis et al. 1999) This point was then argued with the point that if young people were paid adult wages once they turned 18, there would be no discrimination between the youth and adult labour markets. In other aspects of the law young people are considered adults once they turn 18, the drinking age, renting a property, taking out a loan, or moving from home (Grant 2009), so why are they not considered adults when it comes time for payment?
There have been some studies on how changing the minimum wage rates would affect the youth labor market. Some people are concerned that if we were to change the minimum wage rates for young people, it would cause less young people to be hired, and not allowing them to gain any work experience. It has been concluded that raising the minimum wage does in fact reduce youth employment rates, but does not affect labor force participation. (Ragan 1977) Businesses do not want to hire young people for higher rates because they are used to paying them for low wages, but that can also contribute to the fact that adults are losing out on jobs to young people. In order to solve this problem, last year in the UK minimum wage rates for young people were frozen, thinking that this would help create more jobs for young people. When asking the vice chair of the British Youth Council how he feels about the wage freeze, he said that it does nothing to benefit young people, we might as well be asking them to work for free. (Children & Young People Now 2012)
The minimum wage rates can also contribute to the amount of homeless young people found in...
One might ask, what is minimumwage? Minimumwage is the lowest hourly amount an employer can pay an employee. There may be some exceptions based on the type of worker. There are two kinds of minimumwagerates, state and federal. Right now, the current minimumwage is $7.25 per hour. In some states,minimumwages are higher than the federal rate. Workers are paid the higher amount in those locations.
Minimumwage has been a hot subject among the policy makers and economists.
It has also been a hard and tight issue for the economists. This goes back as far as the 1938 Fair Labor Standards Act. Minimumwage was a politically debatable issue. In 1933, President Franklin Roosevelt attempted to legislate a federal minimumwage, but it was taken down. Eventually, President Roosevelt won and Congress passed the FLSA. At that time minimumwage was set at 25 cents per hour. Since the passing of the Fair Labor Standards Act, the United States has required that all firms that do at least $500,000 worth of business per year pay their co-workers a minimumwage. Minimumwage plays a big part in the cost of...
...The Minimum-Wage Controversy
The minimumwage sets a minimum on what employers are allowed to pay workers. In the United States, the federal minimumwage began in 1938 when the government required that covered workers in covered industries be paid at least 25 cents an hour. At that time, the minimumwage was about 40 percent of the average manufacturingwage. The minimumwage was raised occasionally, and by 1996 it had reached $4.25 per hour, which was only 33 percent of the average manufacturing wagerate. Because the minimumwage had declined relative to average earnings, President Clinton proposed and Congress passed a minimum-wage increase to $5.15 per hour in 1997.
This is an issue that divides even the most eminent economists. For example, Nobel laureate Gary Becker stated flatly, “Hike the minimumwage, and you put people out of work.” Another group of Nobel Prize winners countered, “We believe that the federal minimumwage can be increased by a moderate amount without significantly jeopardizing employment opportunities.” Yet another leading economist, Alan Blinder of Princeton and former economic adviser to President Clinton, wrote as follows:
November 5, 2013
Argument Rough Draft
Do minimumwage workers deserve a better paying wage? Perhaps a wage that they are believed to be able to live off of? Will raising the minimumwage help those it really intends to? With unemployment pushing 8% nationwide and costs rising, nationwide people are pushing for minimumwage to be increased. Theminimumwage was established by Franklin Roosevelt as part of the New Deal in the 1930’s. The Fair Labor Standards Act of 1938, as stated by Jonathan Grossman on dol.gov, is what ultimately established the minimumwage nationwide for all workers. The minimumwage guarantees workers a wage that is fair for all workers. It is the lowest possible amount that an employer can pay their workers.Though it is believed that the minimumwage will help the lower class, raising it will not actually help those it intends to, but in fact raise living costs and many other expenses when the minimumwage is raised.
The problem with minimumwage is that it is not kept up with yearly. As inflation across our country increases yearly, minimumwage stays the same. With unemployment at about 8%, many people are...
...Cost of MinimumWage
Price floor is the minimum price buyers are required to pay for a good or service. Now the question to find an answer to is how high we should raise minimumwages. Higher pay wages affect the price we pay at the store, the amount of work hours, and the young unskilled worker. Some companies will compensate the higher wage by hiring a more skilled worker than paying for an unskilled worker, therefore the younger generation without experience will find it harder to find jobs. Also firms can and will downsize, reducing hours because they are paying a higher minimumwage. With a higher paid workforce, consumers will pay a higher cost for products.
Everyone should have the opportunity to earn a decent wage. The minimumwage is not just about helping the impoverished, it is about the fairness, the value of work, and the opportunities that work provides. People do benefit from the minimumwages, because big vulnerable companies do not want to be seen breaking the law. Many smaller companies hire illegal aliens and pay them below minimumwage, recognizing that their workers cannot complain.
According to the Bureau of Labor Statistics, 1.8 million paid-hourly employees were paid the federal minimumwage...
...Minimumwage in Nepalese Labor Market
Minimumwage is the price floor imposed by the government for the welfare of labor. Price floor is the legal minimum on the price at which a good can be sold. It is an attempt by the government to maintain prices at other than equilibrium levels. When a government imposes a price floor, there will be two cases. One the price floor is not binding if the price floor is maintained below equilibrium price level. In this case, the market forces naturally move the economy to the equilibrium level and the price floor has no effect. In other case when price floor is above equilibrium level, such price floor is binding. In this case the market price equals price floor as government imposes such control on prices for the welfare of labors. At this point the quantity supplied exceeds the quantity demanded which results in surplus of labor i.e. unemployment. Since the supply is high some seller are unable to sell all they want at the market price. The sellers who appeals to personal biases of the buyer, perhaps due to racial or family ties, are better able to sell their goods than those who do not. By contrast, in a free market, the price serves as the rationing mechanism, and sellers can sell all they want at the equilibrium price. The impact of minimumwagerate depends on the skill and experience of workers. Highly experienced and...
MinimumWage - The Dubious Policy
MinimumWage The Questionable Policy
As early as 4:00 am in the dark and cold morning of winter, a few people walking on an wet sidewalk. Under chilling wind, those people walk to a large, old building. Inside the building, the people work for repetitive, backbreaking low waged jobs. In the same day, late at night, you can see similar scene: some people walking out of the building under heavy humidity.
I'm not one of those people, I don't know the feeling of a minimum waged worker. Like all of those workers, I feel exhausted after finishing my job. Everyday, I wait with impatience to hear my supervisor say “That's it, go home.” After I drop my load and park my truck and wipe my sweat, I can only think to return to My home and sleep. I lost most of my time and energy just for a few dollars.
There are a lot of people that work harder and earn less than me. The poor, especially less-skilled workers, have access only to “bad jobs at bad wages”. Those workers always face bad situations. They are poor. They are struggling to sustain the life of their resoective families.
On the contrary, the owners of the companies where we work have a high standard of living. Low wages are advantageous for the group of people known as traditional elites who own labor-intensive firms because it lowers production cost, thus increase the...
A minimumwage is the minimum amount of compensation an employee must receive for performing labour. In economic term, minimumwages is the price floor of the pay of the labour that set by the government. The minimumwagesrate normally was fixed by legal authority as such, it is illegal to pay an employee less than theminimumwage. Our economic transformation goal is to make Malaysia a high-income nation by 2020, with a per capita income of US$15,000 a year, however there are still around 30% of the people in Malaysia are still living below the poverty line. The general purpose for the implementation of the minimumwages is to ensure that the wages of a labour is able to meet the basic standard of live which is be at or above the poverty line so that they can survive with their salary. In Malaysia, The Prime Minister YAB Datuk Seri Najib Abdul Razak announced the rates of national minimumwages in Peninsular will be RM 900 while Sabah, Sarawak and Labuan will be RM800. This implementation of minimumwages in Malaysia was the decision under the National MinimumWages Consultative Act 2011. The national minimumwage is the...
...The concept of a minimumwage has been around for over a century; New Zealand was the first country to have a minimumwage, enacted in 1894. The United States introduced minimumwage during the Great Depression in 1938. (Anderson) A minimumwage is a price floor; this sets a base line wage that companies have to pay their employees. Currently in the United States nearly 75 million people work minimumwage jobs. (Goldstein) In 2004 the federal minimumwage was $5.15 an hour and only 12 states had higher minimumwages. (Wall Street Journal) Today it is $7.25, last updated in 2009. Polling shows that the public supports an increase in the minimumwage. (Kusler) Minimumwage brings together theoretical economics and real world economics, by coming up with a number that is as close as possible to the natural equilibrium while still providing a wage that workers can live on. It has positives and negatives, but I think the positives outweigh the negatives.
Proponents of the minimumwage want a base line wage that workers can earn so they are not taken advantage of and can earn enough to provide for their families. This side of the argument assumes that the...