Minimum Wage Rise Proposal - 1105 Words

Dear Honorable (name of US Senator): I strongly recommend you support your â€Å"minimum wage rise proposal† on San Francisco’s evidence, which in 2004 enforce a 26% increase in minimum wages resulted in a â€Å"significant increase in wages and compressed wage inequality without create any detectable employment loss† . By reading this memo, you will found a resume of Dube et. at (2007) study underlying both: strong evidence that support wage rises in some contexts, and the more relevant advices respect the limitations of the results and interpretation in terms internal and external validity. Although the paper has remarkable value , its results based in a single case study have consequential limitations. First, authors set a relevant policy†¦show more content†¦Finally, they remain doubts about the reliability of the data collection. Have non-random restaurants incentives to misreport? Measurement error in independent variables generates attenuation bias, while in independent higher standards errors. Even when heteroskedasticity-corrected standard errors are used, they are critical and, if high, the effect is less likely to be identified: if minimum wage rise had a small but real (positive or negative) employment effect, random errors could produce a larger or smaller misemployment effect than the true level, even zero . Given that probably remains some measurement error problems in the study, could be that the employment rate effect is not correctly identified. Results are the average wages effect valid only for the narrow definition of treated cases, assuming â€Å"constant effects† on employment, and controlling for pre-existing differences and time trends. However , a bigger sample (more states, levels wages and law compliance) will serve to estimate different effects as what happen at other levels of minimum wages? Is the effect constant above income levels? We do not think so . Besides, the paper says nothing about long term effects. These results are still sensible to economic downturns or variables changing over time. Longer data periods would avoid time effects. What would happen if the rise coincides with anShow MoreRelatedThe Economic Impact of Raising the Minimum Wage1474 Words   |  6 Pageswith it a national minimum wage. Echoes of that speech are still heard today. Senator Edward Kennedy (1989: S14707), in his criticism of the most recent increases in the minimum wage, declared: The minimum wage was, as it should be, a living wage, for working men and women ... who are attempting to provide for their families, feed and clothe their children, heat their homes, [and] pay their mortgages. The cost-of-living inflation adjustment since 1981 would put the minimum wage at $4.79 today, insteadRead MoreCongress Should Raise The Federal Minimum Wage1042 Words   |  5 PagesMany Americans agree that Congress should raise the federal minimum wage, but do individuals truly know the effects of increasing the minimum wage to $15? Some people only look at the comprehensive view of seeking a higher salary, but the increase can cause many negative, as well as positive, effects. Several economists from across the country have done extensive research over the topic of the minimum wage increase, and many differing opinions have formed. The effects can vary from person to personRead MoreThe Minimum Wage Should Be Legal905 Words   |  4 PagesRise in minimum wage has sever al impacts apart from unemployment. The minimum-wage workers would have to pay more taxes and receive fewer benefits if they are subjected to rise of minimum wage. The federal marginal rate for tax is 32 percent on an average for low earning members. This would amount to almost one third of the income of a worker. The tax rate is quite high for low paid workers. The rise of minimum wage would also reduce some of the advantages and leverages that the low-wage workersRead MoreShould Minimum Wage Be Raised? Essay1596 Words   |  7 Pagesgovernment has so generously termed the â€Å"minimum wage†. In Missouri, the minimum wage has been set at a rather appalling $7.65 per hour while in other states there are wages starting as high as $10. Though arguably the economy is not as sluggish and terrible as it once was, $7.65 per hour will not help those who have children, no college degree and debts to pay. It is not only Missouri that has minimum wage laws, but every other state in A merica has minimum wage laws in place. Both California and SeattleRead MoreMinimum Wage Raise in Seattle800 Words   |  4 PagesMinimum Wage Raise in Seattle After the protest in New York City, the issue of raising the minimum wage has come up once again. Seattle is spearheading this cause with a proposal of raising the minimum wage to $15 per hour. This will help minimum wage workers a great deal by increasing their income. However, there are concern that this move could hurt certain businesses, which can lead to higher unemployment and contraction of the economy. The ethical issue surfaced as this will benefit some atRead MoreThe Minimum Wage Act Of 20071607 Words   |  7 Pages Introduction In 1938, the first national minimum wage laws in the United States were passed as part of the Fair Labor Standards Act, which served as â€Å"a floor below wages,† to reduce poverty and to ensure that economic growth is shared across the workforce. Today, many people who work for companies that pay at or near the minimum wage and remain near or below the poverty level rely on government health and food security and income programs to supplementRead MoreWar on Wages1168 Words   |  5 Pagesthe dilemma of service employees earning minimum wage in the United States, â€Å"Even with the tax relief we’ve put in place, a family with two kids that earns the minimum wage still lives below the poverty line†¦that’s wrong† (qtd in State of the Union Address 2013). The debate over whether or not the minimum wage should be raised has carried on for years between Democrats and Republicans. While many Republican politicians feel that an increase in minimum wage wo uld be devastating to the economy in termsRead MoreEffects of Increasing Minimum Wage Essay988 Words   |  4 PagesThe idea of having a federal minimum wage is a good one. The idea is to protect low and unskilled workers from discrimination and allow all workers to earn a living wage. The recent debate on the floor, though, is whether or not to raise the minimum wage from the current $7.25 per hour up to $10.10 per hour. President Barack Obama made this proposal during his annual State of the Union Address on January 28, and following this there were many hot debates about it. The debates focused not only onRead MoreRaising Minimum Wage Means Raising American Concern760 Words   |  3 Pagesgoing crazy when they first heard President Obama proposal to raise the minimum wage hourly pay from $7.25 an hour to $10.10 an hour. These people think that they are going to get more money in their pockets with a higher hourly wage. These people are clueless. They do not know the consequenc es that come with raising the minimum wage. Many people that work a minimum wage paying job are teenagers and young men and women, but higher minimum wages would make it harder for these teenagers to find jobsRead MoreMinimum Wage Argument Jack Page 2/26/13 One of the hot topics recently in this country is the600 Words   |  3 PagesMinimum Wage Argument Jack Page 2/26/13 One of the hot topics recently in this country is the question, and debate, of should minimum wage be raised? With both sides wildly arguing about raising the minimum wage being good or bad, and the truth behind whether it will do more good than harm to this country. The question still remains with should it be raised? For supporters of the wage being raised they are excited for what the White House’s Council of Economic Advisors stated. â€Å"White House’s Council