Essay on Minimum Wage

1940 Words Feb 25th, 2012 8 Pages
Rachael Lawless
Ellingson ENG#101-21202
Rough Draft
22 November 2011
No Title Yet Minimum wage has been a continuing matter since its first establishment, and it is something everyone faces. Though, the recurring problem being brought up again and again is the issue of being underpaid, and is the set minimum wage fair? And will raising minimum wage be more beneficial or harmful in the long run? Through its history can society better understand and find a solution to this problem. Minimum wage was not instituted in the United States until the 1920s, and the idea of wages being determined by the hour was introduced in the 1930s. The Fair Labor Standards Act was born and passed through the Supreme Court in 1938, as well as the Wage and
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This basically means that those with a minimum wage set higher than the federal faced a higher employment growth, while the states with the minimum wage set at the federal rate experienced a slightly lesser growth rate. Looking at retail and restaurants, typically minimum wage jobs, they looked at variables such as “the fraction of work directly affected by the minimum wage increase, the change in the state’s employment/population ratio, the change in the state’s unemployment rate, the change in the log of the average adult male’s wages, and regional effect” (221). In the end, they found that with a required minimum wage increase in the retail and restaurants, “employment…tends to increase, not decrease, all else remaining equal” (221). On the contrary, in the hotel industry, this increase impacted employment was negative, and insignificant in terms of statistics. Overall, through their analysis, they found that raising minimum wage bears no dramatic significance on the employment rate, and if it affects it at all, the impact is not that significant. The opposition has offered about the same amount if not more of solutions compared to those in

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