From Vaughan Dickson and Tony Myatt, “The Determinants of Provincial Minimum Wages in Canada,” Journal of Labor Research 23 (2002), 57-68: In the last few years, prompted largely by the work of Card and Kruger (1995), numerous articles on the employment effects of minimum wage legislation have appeared. This renewed interest in how minimum wages affect employment leads naturally to another question: What factors determine the minimum wage? Despite the ubiquity of minimum wage legislation, this question has received surprisingly little attention. One reason may be that in the U.S. the minimum wage is legislated at the federal rather than at the state level of government. Since this federal wage changes only occasionally, most U.S. studies have been limited to cross-sectional studies that focus on how the characteristics of the states, and the party affiliation of legislators, influence the vote on proposed changes in the federal minimum wage (Silberman and Durbin, 1970; Kau and Rubin, 1978; Bloch, 1980; Seltzer, 1995). However, as pointed out by Baker et al. (1999), Canada offers some unique advantages for minimum wage studies: Since the Canadian minimum wage is under provincial, not federal jurisdiction, there has been substantial variation in the level and timing of changes in the wage across provinces, thus providing the opportunity to explore a relatively rich panel data set. To date, only one... study (Blais et al., 1989) has investigated the determinants of provincial minimum wages using a pooled data set extending across eight years (1975 to 1982) and nine provinces.... As noted, U.S. studies have usually been cross sectional and have examined what variables influenced congressional voting for increases in the federal minimum wage. For example, Bloch (1993) related state wage levels and proportions of unionized employees to votes by senators to amend the 1977 and 1989 Federal Labor Standards Act and thereby increase the minimum...
October 6 2013
News article: http://nytimes.com/2013/02/13/us/politics/obama-pushes-for-increase-in-federal-minimum-wage.html?pagewanted=all&_r=0
American workers will have a 1.75$ increase in their hourly wage by the end of 2015, as President Barack Obama recently called to raise the federal minimumwage from $7.25 an hour $9.00 an hour. This increase in the minimumwage of American citizen aims to help people with a low annual wage: cooks, employees of the janitorial industry and many others working these necessary menial occupations are set to benefit. The white house estimates that this measure will boost the wage of approximately 15 millions low-income workers.
Raising the minimumwage, according to the White House press, will have some positive effect for low-income families; however, many companies are opposed to raising the minimumwage. A higher wage will have a direct impact on the cost of business. Some economists argue that higher minimumwage will result in an increased unemployment percentage. Although minimumwage laws can fix hourly pay, they cannot guarantee jobs. Employers are not willing to pay a worker more than the value of the additional product that he...
...Minimumwage is defined as the lowest possible income that an employer can legally pay an employee. This ensures that all people are fairly paid and not defrauded by companies or businesses. Minimumwage is now a staple in 90 percent of countries in the world (Minimum). Even with these minimums, a person’s lifestyle is hard to maintain. Sustainability, in my opinion, is the ability to keep or maintain a certain amount of physical or mental property. In this light of sustainability, minimumwage is not a sustainable amount of money in which to survive with a basic quality of life. There are many supporters and objectors to the minimumwage debate. Supporters say that increasing minimumwage increases the workers earning power and wages. Objectors say that increasing minimumwage only leads to unemployment due to small companies’ inability to pay workers. Also the increased inflation rate of goods only hurts the economy, which leads to many jobs being lost, mainly the jobs held by minimumwage patrons. Although this is a heated debate there is one thing to which both sides agree; something needs to be implemented so that workers are not exploited by businesses. Economists are exploring the viability of minimum...
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 minimumwages rate normally was fixed by legal authority as such, it is illegal to pay an employee less than the minimumwage. 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 first ever in Malaysia. This...
Comprehensive Analysis on MinimumWage in Indonesia
“Comprehensive Negative Impacts Analysis of MinimumWage for DKI Jakarta”
Andhika Putra Sudarman
Fakultas Hukum Universitas Indonesia
“If the MinimumWage of DKI Jakarta is set to Rp10.000.000,00, will everybody prosper?”
Laborers in DKI Jakarta demonstrating for an increase of minimumwage[][] is not a rare thing to see. The reason is because they can no longer meet their needs with their current wage. However, minimumwage has been raised for many times since it was first introduced in the 1970s. So, what exactly is going wrong in our beloved country, or the problem is within the minimumwage itself?
In this essay, the vision of why minimumwage should not be put into implementation in DKI Jakarta shall be given, for not only minimumwage law do not bring welfare to the people, instead it will cause unemployment and limit the workers’ productivity. In other words, the problem lies in the minimumwage itself.
MinimumWage Does Not Solve Poverty
If the purpose of the minimumwage is a protection to the workers so that they can prosper, it is precisely with the...
Should We Raise the MinimumWage to the Average Pay Rate?
University of Phoenix
September 30, 2013
“Should We Raise MinimumWage to the Federal Average Pay Rate?”
On the United States Department of Labor website it states that in 1938 it was decided that a federal minimumwage should be set. When it was set, it was set for the amount of $0.25 an hour. Now as of 2013 it is $7.25 an hour. (Grossman 1978. Washington’s minimumwage is the highest at $9.19 an hour, it joins its 18 other states with a higher wage. Almost half the states agree with the minimumwage; five have wage lower and another five do not even have a minimumwage. There is clearly a divide on the thoughts of raising minimumwage to make things more even. What our group wants to question here today is the raise of minimumwage to the federal average pay rate. In the United States after researching 426,448,460 people in more than a thousand occupations the average pay rate would be $20.60. (United States Department of Labor 2013) Thomas Sowell says it best,
`“Unfortunately, the real minimumwage is...
...The minimumwage is the lowest rate at which a worker can be played. There she minimumwage laws pegged to hourly, daily and even monthly rates, although U.S. law is pegged to an hourly wage. Also, a minimumwage law usually makes it illegal for a person to sell his labor for less than the minimumwage rate
The general purpose of the minimumwage is to guarantee a living wage to all workers who work a standard period of time, whatever that might be. In theory, any labor who works 40 houses a week on minimumwage should be at or above the poverty level line. However, the minimumwage has not kept up pace with the inflation in the United States and the cost of living increases more than the wage increases that are given and that way behind the standards
Minimumwage laws were first started in Australia and New Zealand in the 1890s.The first minimumwage to be law was in Massachusetts in the 1912 but it only applied to children and women. The federal minimumwage 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....
...History of the MinimumWage
· 1938 -- The minimumwage was first enacted into law as part of the Fair Labor Standards Act (FLSA) of 1938. The original minimumwage applied to workers engaged in interstate commerce and the production of goods for interstate commerce. In 1938, this applied to roughly 11.0 million workers out of a total of 54.9 million workers. The minimumwage was set at $0.25 per hour.
· 1961 -- Amendments to the minimumwage law extend coverage primarily to employees in large retail and service trades as well as local transit, construction, and gasoline service station employees.
· 1966 -- Amendments to the minimumwage law extend coverage to state and local government employees of hospitals, nursing homes, and schools and to employees of laundries, dry cleaners, large hotels and motels, restaurants, and farms. Subsequent amendments extended coverage to the remaining federal, state and local government employee not protected in 1966, to certain workers in retail and service trades previously exempted, and to certain domestic workers in private household employment.
The 20-percent increase in the federal minimumwage scheduled to occur over the next year may not be the best way to boost the incomes of low-skilled workers and their families. This article...
...Union address, President Obama aggressively addressed the age-old debate of raising the minimumwage. The President has urged legislators to raise the federal minimumwage to $10.10 per hour to fight the ongoing battle of class inequality. Subsequently, Massachusetts legislators proposed a bill that would incrementally raise the state minimumwage to $10.50 over the next two years just weeks after the President’s address. The prospects of this proposed legislation have left workers and liberals alike in Massachusetts rejoicing while employers and conservatives (all five of them) have balked at the bill. The following paper looks to examine this proposed bill and accompanying arguments for and against raising the minimumwage.
The Massachusetts MinimumWage
On March 13 of this year, House Speaker Robert DeLeo proposed a bill to incrementally raise the current state minimumwage in Massachusetts from $8 to $10.50 by the middle of 2016. Unlike the proposed federal legislation, however, the new minimumwage in Massachusetts would not be tied to future increases in inflation. The bill entails an increase in wages to $9 in July of 2014, followed by an increase to $10 in 2015, and ultimately, an increase to $10.50 by mid-2016. This proposal, however, is not a new...