Minimum Wage and Its Outlook in European Countries
History of minimum wage
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Other say that minimum wage idea was also an attempt to counter the selfish tendencies of industrialists, well observed by Nina Assordobray that was investigating the origins of the development of the working class, in here statement she says:"...through low pay, you can get worker to do regular work (...) The worker is lazier, if their food resources are cheaper and the salary is higher(...) Proper manufactory prosperity dependents on cheap worker, whose earnings are enough for food and clothing" (Assrodobraj, 2005). As one can see, the minimum wage has quite a long history. It was first introduced in New Zealand in 1894 and two years later in Australia in Victoria. …show more content…
In 1981, it rose to US $ 3.35 per hour. Negative assessment of the statutory minimum wage, under Reagan administration, were indicating that it leads to an increase in unemployment, inflation and bankruptcy enterprises. The rate was not increased, although purchasing power wages declined during this period by 27%. The fight for minimum wage indexation heavily involved Senator Edward Kennedy, Chairman of the Committee of the Labor and Human Resources of the United States Senate, highlighting that low, not changed for years minimum wage does not provide full-time employees funds to meet the basic needs of their families, while enabling the most ruthless and unscrupulous companies exploiting workers. He believed that the rate should be raised to $4.65 per hour, and also to prevent the commission of similar "errors" in the future, the minimum rate should be indexed to half the average national rate (Kamerschen, 1999). Currently, the minimum wage in the US is varied. The official rate is 7.25 federal USD hour, but in 4 states the rate is lower ($6.25), and 20 states higher (the highest in the District of Columbia $8.25). President Barack Obama proposes to raise the minimum wage to 9-9.5 dollars per hour (Budnikowski, 2009). The minimum wage has been sanctioned by the International Labor Organization in 1928. Introducing the minimum wage ILO justified by the following …show more content…
Negative impact of the minimum wage on unemployment also confirmed later research as well as reports of the OECD (Neumark, 1997). Findings of empirical impact of the minimum wage on the unemployment rate are not 100% unbiased. The collapse of the US economy and the crisis widening income inequality, as well as the need to stimulate domestic demand consumption led to a different view of the minimum wage. Increasingly, it is noticed a need to raise the minimum wage because it is beneficial for low-income families, entrepreneurs (as it leads to an increase in demand for consumption), and also helps the economy out of the recession (Auerback,
History of minimum wage
T
Other say that minimum wage idea was also an attempt to counter the selfish tendencies of industrialists, well observed by Nina Assordobray that was investigating the origins of the development of the working class, in here statement she says:"...through low pay, you can get worker to do regular work (...) The worker is lazier, if their food resources are cheaper and the salary is higher(...) Proper manufactory prosperity dependents on cheap worker, whose earnings are enough for food and clothing" (Assrodobraj, 2005). As one can see, the minimum wage has quite a long history. It was first introduced in New Zealand in 1894 and two years later in Australia in Victoria. …show more content…
In 1981, it rose to US $ 3.35 per hour. Negative assessment of the statutory minimum wage, under Reagan administration, were indicating that it leads to an increase in unemployment, inflation and bankruptcy enterprises. The rate was not increased, although purchasing power wages declined during this period by 27%. The fight for minimum wage indexation heavily involved Senator Edward Kennedy, Chairman of the Committee of the Labor and Human Resources of the United States Senate, highlighting that low, not changed for years minimum wage does not provide full-time employees funds to meet the basic needs of their families, while enabling the most ruthless and unscrupulous companies exploiting workers. He believed that the rate should be raised to $4.65 per hour, and also to prevent the commission of similar "errors" in the future, the minimum rate should be indexed to half the average national rate (Kamerschen, 1999). Currently, the minimum wage in the US is varied. The official rate is 7.25 federal USD hour, but in 4 states the rate is lower ($6.25), and 20 states higher (the highest in the District of Columbia $8.25). President Barack Obama proposes to raise the minimum wage to 9-9.5 dollars per hour (Budnikowski, 2009). The minimum wage has been sanctioned by the International Labor Organization in 1928. Introducing the minimum wage ILO justified by the following …show more content…
Negative impact of the minimum wage on unemployment also confirmed later research as well as reports of the OECD (Neumark, 1997). Findings of empirical impact of the minimum wage on the unemployment rate are not 100% unbiased. The collapse of the US economy and the crisis widening income inequality, as well as the need to stimulate domestic demand consumption led to a different view of the minimum wage. Increasingly, it is noticed a need to raise the minimum wage because it is beneficial for low-income families, entrepreneurs (as it leads to an increase in demand for consumption), and also helps the economy out of the recession (Auerback,