Minimum wage and the working poor in the USA

Robin C.

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Minimum wage and the working poor in the USA

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Minimum wage; working poor; USA:

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Résumé du document

This executive report presents the notion of working poor (in the USA), the political aspects of such a situation, and some solutions applicable to solve the problem.

Sommaire

Concepts and Definitions to know before dealing with the subject: ....................................... 3
I) History and evolutions of the minimum wage: ................................................................... 4
II) Pros and Cons of having such a measure ......................................................................... 5
III) Actual situation ...................................................................................................................... 5
IV) The economic downturn, the specter of a situation that could worsen: ................... 7
V) Some solutions to diminish the problem ............................................................................... 7
Bibliography ....................................................................................................................................... 8
Appendix .............................................................................................................................................. 9
Consolidated State Minimum Wage ......................................................................................................... 9
Map of the minimum wage laws applicable in the states: ................................................................ 10
Graph :History of US federal minimum wage increases ............................................................. 10
Percent of low income working families ............................................................................................... 11
Percent of low income working families with parents with no postsecondary education ......... 11
Unemployment among families with a working spouse : .......................................................... 12
International comparison of different minimum wages per hour ......................................... 12

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Extraits

[...] Low-income working family:4 Is defined as a family earning less than 200 percent of the poverty income threshold as defined by the U.S. Census Bureau for 2006, which was $41,228 for a family of four. Earnings at 200 percent of poverty are used for low-income as a number of studies, including from the National Research Council, have concluded that the poverty threshold is an inadequate measure of economic self-sufficiency as it fails to consider the realistic costs of basic needs for families today. [...]

[...] Sum, director of the Center for Labor Market Studies at Northeastern University. [ ] “I've tried for everything, retail sales, office work, but the employers all say they have too many staff and they're not hiring Ms. Everett said. “McDonald's was the only place that would take me, but only part-time,” for $ 7.25 an hour. Extract from the NY Times9 Some solutions to diminish the problem: Politicians have told U.S. citizens that they will invest in education, for people to get better qualification, so that they will be able to get better jobs, but as it is mentioned in the article of Mr. [...]

[...] So if the federal minimum wage is different than the state's one, the higher rate applies to the worker. See also Card David, K. A. (1995). Myth and measurement "The new economics of the minimum wage". Princeton: Princeton University. For some ideas about the fact that increases in the minimum wage could have a negative effect on employment But, the problem is that the persons who do not earn more than the minimum wage are generally confronted with some financial problems. [...]

[...] The minimum wage was re-established in the United States in 1938 (pursuant to the Fair Labor Standards Act), once again at $ 0.25 per hour 3.77 in 2009 dollars). The minimum wage had its highest purchasing value ever in 1968, when it was $ 1.60 per hour 9.86 in 2010 dollars). From January 1981 to April 1990, the minimum wage was frozen at $ 3.35 per hour, then a record-setting wage freeze. From September through July the federal minimum wage remained constant at $ 5.15 per hour, breaking the old record. Congress then gave states the power to set their minimum wages above the federal level. [...]

[...] ( 14). Growing number of U.S. workers are poor: study. Retrieved from reuters.com: http://uk.reuters.com/article/2008/10/14/us-poverty-usa-lifeidUKTRE49D5RA20081014 Boushey Heather. ( 20). Women breadwinners, men unemployed. Retrieved from americanprogress.org: http://www.americanprogress.org/issues/2009/07/breadwin_women.html Boushey, H. ( 20). Women breadwinners, men unemployed. Retrieved from americanprogress.org: http://www.americanprogress.org/issues/2009/07/breadwin_women.html Card David, K. A. (1995). [...]

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