Lowwage work Morgan Jones Kelsey Huang Natalie Hubert

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 four o in 2007 1 in 3 jobs were considered low-wage ● Generally o o o low skill less hours or non-standard hours lack of benefits offered little opportunity for advancement requiring few credentials and limited education at risk for poverty

Reasons for Low-Wage Work ● Involuntary Part-Time o Workers who prefer full time employment § § § o o Part time workers made 58% of full timers in 1989 Shift from manufacturing to service jobs § o cut labor costs accounts for most of part-time growth since 1969 scheduling flexibility (employer perspective) low wage, low skill, high turnover 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 affected o 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 o Evidence points to little or no employment response Likely has no effect on prices rising such as in 1991

Tax Penalty to Companies ● Employees living in poverty o o better pay/benefits or tax 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 consideration On low-wage work

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