Low-wage work
Morgan Jones, Kelsey Huang, Natalie Hubert, Andrew Stafford
Definition and Characteristics
● A job paying less than two thirds the median wage or● A full time, year round worker earns less than the
poverty threshold for a family of fouro in 2007 1 in 3 jobs were considered low-wage
● Generallyo low skillo less hours or non-standard hourso lack of benefits offeredo little opportunity for advancemento requiring few credentials and limited educationo at risk for poverty
Reasons for Low-Wage Work
● Involuntary Part-Timeo Workers who prefer full time employment
cut labor costs accounts for most of part-time growth since 1969 scheduling flexibility (employer perspective)
o Part time workers made 58% of full timers in 1989o Shift from manufacturing to service jobs
low wage, low skill, high turnovero Deunionization
Involuntary Part-Time
Significance
● Driving Income inequality
● Disconnect between pay and productivity
What we know
● Increase in the federal Minimum wage from $5.15 in 2006 to $7.25 in 2009
● Nearly 41% increase in the minimum wage in 2009● In 2009 the federal minimum wage is suggested to be
7.8% less than its value in 1967● In 2011 the minimum wage was calculated to be 37% of
what an average worker earned per hour● This is a major factor in the rising inequality in the
United States
Possible Solutions
● Raising the minimum wage to $10.10 by 2017
● Tax penalties for companies who have low wage workers
Rising Inequality
Raising the Minimum Wage
● Provide a boost in income to low-wage with small increase to $10.10 by 2017
● A moderate increase to the minimum wage o About 17 million workers would receive a wage boost
About 8 million children are in families that would be affectedo Mostly Adults would be affected
84% over the age of 20 47% over the age of 30
Research on Raising the Minimum Wage
● Hasn’t been raised in over 5 years● Mens average wage has decreased over the last
thirty years● Small to moderate increases to the minimum
wage o Evidence points to little or no employment responseo Likely has no effect on prices rising such as in 1991
Tax Penalty to Companies
● Employees living in povertyo better pay/benefits or taxo pay for government coverage
Young’s Research
- Young, Alford. 2008. “The Work-Family Divide for Low-Income African Americans.”
- Work/family conflict has even worse effect on low-income families (4 different African Americans discussed in the book)
- jobs only for fulfilling basic needs and interest of family members;
Research *Henly, Julia R. and Susan Lambert. 2005. “Nonstandard Work and Child-Care Needs of Low-Income Parents.”
● Low income workers often experience volatile and non standard scheduling challenges○ Low- skilled jobs have non standard features○ About half of low-wage hourly workers have nonstandard schedule
● Child care issues○ Parents with fluctuating or nontraditional job schedules have difficulty
accessing licensed child care○ Nonstandard schedules impact children's behaviors, educational
outcomes, parent-child interaction.
Thank you for your time and considerationOn low-wage work
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