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Originally Posted by Manx
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I am having a hard time with your source. Several of the statements made there are highly questionable, but hard to truly dispute as the facts aren't clearly given. Here is an example:
This claim is made by EPI:
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Another frequent claim is that most living wage workers are teenagers. However, studies of the minimum wage show that 70% of minimum wage workers are adults. The proportion of adults is probably higher among living wage workers, since living wage ordinances cover jobs typically held by adults, like janitors and bus aids.
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First, it is a no-brainer that the majority of people that earn minimum wage will be adult, especially since "adulthood" starts at 18.
However, almost half of the workers making minimum wage or less are under the age of 25. A little more than 25% of minimum wage earners are 18 or under. That shows that, proportionately, there are considerably more people not yet to adulthood, that earn the minimum wage or less.
And more:
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About 2 percent of workers age 25 and over earned the minimum wage or less
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About 4 percent of women paid hourly rates reported wages at or below the prevailing Federal minimum, compared with about 2 percent of men
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Roughly two-thirds of all low-wage workers in 2002 were in service-type occupations, mostly in food service jobs.
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Food service = usually makes even more money once tips are included, if they are reported.
From your source, the Economic Policy Institute:
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In 1999, 26.8% of the workforce earned poverty-level wages, an increase from 23.7% in 1979.
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From the Bureau of Labor Statistics:
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The proportion of hourly-paid workers earning the prevailing Federal minimum wage or less has trended downward since 1979, when data first began to be collected on a regular basis.
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Not necessarily an exact match, as one references "poverty level" wages and the other references "minimum wages". However, I find it odd that one shows a decrease and one shows an increase for a very similar labor pool.
As with statistics, if you want a desired result, it is relatively easy to get there if you are in control of what facts are included and which facts aren't.
In my opinion, wage growth cannot be forced, it is a product of the particular market. Why did the earnings in the IT category explode during the 90's? Easy, the demand increased without a corresponding increase in the supply, which causes labor prices to increase. Why are they decreasing now? The supply went beyond the demand.
For the most part, you have to let the marketplace set the labor price, it will be much more efficient that
way.
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