As of January 1st, 2016, the minimum wage in California is 10 dollar per hour and throughout the year, the minimum wage increases by a few cents. Currently, the minimum wage increased to 10.30 per hour. What is minimum wage? Minimum wage is a standard limit meant to guarantee a fair wage for the lowest pay workers (EPI). Some might agree that raising the minimum wage will help improve the life of low-income family. On the other hand, some thinks the opposite. Not too long ago, people are proposing for a 15 dollar minimum wage by the year 2020, 4 years from now, in hope of improving poverty. Raising minimum wage can affect everyone in one way or another. However, raising the minimum wage will only do more harms than goods. Raising the minimum
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Those reason could be skills, talents, compensating differences, and or discrimination. It is all depends on the job. In term of different types of worker, each will be affected in their own way when the minimum wage is increase. For skilled and semi-skilled worker, they are similar, they are non-affected group because companies and firms are most likely to keep workers that are that are most beneficial to them. They does not need to be train and that help the firms to save times and that time will be use to produce more products. As for unskilled workers, they are most likely will be laid off because they are not beneficial to the firms. Since the minimum wage increases, firms are looking for an alternative to save money and that lead them to turn to machinery. In a bulletin by Joseph J. Sabia, associate professor of economics at San Diego State University, wrote for Cato Institute, he states that many firms respond to to the increase in minimum wages by replacing low-skilled labor with machinery (Sabia, 2014). Firms will laid off their unskilled workers and replace them with machinery that can produce double the amount a regular worker can produce in the same amount of time. Furthermore, ethnicity, race, and gender are also an important factors that determine the positions and or wages of that worker. In the article, “Issues and Tissues,” by Nicholas Schultheis, his data shows that the average income Caucasian is $67,175, Hispanic was
Those reason could be skills, talents, compensating differences, and or discrimination. It is all depends on the job. In term of different types of worker, each will be affected in their own way when the minimum wage is increase. For skilled and semi-skilled worker, they are similar, they are non-affected group because companies and firms are most likely to keep workers that are that are most beneficial to them. They does not need to be train and that help the firms to save times and that time will be use to produce more products. As for unskilled workers, they are most likely will be laid off because they are not beneficial to the firms. Since the minimum wage increases, firms are looking for an alternative to save money and that lead them to turn to machinery. In a bulletin by Joseph J. Sabia, associate professor of economics at San Diego State University, wrote for Cato Institute, he states that many firms respond to to the increase in minimum wages by replacing low-skilled labor with machinery (Sabia, 2014). Firms will laid off their unskilled workers and replace them with machinery that can produce double the amount a regular worker can produce in the same amount of time. Furthermore, ethnicity, race, and gender are also an important factors that determine the positions and or wages of that worker. In the article, “Issues and Tissues,” by Nicholas Schultheis, his data shows that the average income Caucasian is $67,175, Hispanic was