THE MISLEADING CLAIM: The minimum wage needs to be a living wage since people spend their lives earning it. THE REFUTATION: Per an FSU and University of Ohio study, thats mostly false. The study, entitled Wage Growth Among Minimum Wage Workers examined two decades of Current Population Survey (CPS) data and found wage growth among minimum wage employees is actually quite robust. Over the 23 years of data studied in the report, nearly two-thirds of minimum wage employees who continued employment were earning MORE than the minimum wage within 1–12 months. That theyre voluntarily given a wage raise within the first year of employment PROVES most minimum wage earners arent destined to a life on minimum wage incomes, dispelling concerns that wage laws are required to prevent employers from paying even LESS. If such concerns rang true, after all, how would one explain the willingness of firms to routinely pay ABOVE minimum requirements once individuals gain experience? As the report states, While many workers may begin their career at the minimum wage, approximately two-thirds realize sufficient wage growth to push them above the minimum wage within ONE year. Contrary to popular narratives, the wage growth experienced by (formerly) minimum wage employees is actually MUCH larger than that of other employees. Over the past 23 years, the median annual growth in wages for minimum wage employees has been nearly six times that of employees earning more than the minimum wage. In other words, if you start a job earning the minimum wage, you are EXTREMELY likely to get a raise. So no, the vast majority of people DONT spend their lives on the minimum wage.
Posted on: Thu, 23 Oct 2014 21:03:53 +0000
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