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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