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Minimum wage law.



Hardly. Lowering the minimum wage isn't going to make an unskilled and lazy teenager useful.

We have programs for this:

* http://www.jobcorps.gov/home.aspx -- This provides room, board, a stipend suitable for a teenager with no expenses, and vocational training for those under 25 years old (i.e, teens)

* http://www.fafsa.ed.gov/ -- There's really no disputing this one. Any one of them can hoof it over to the nearest community college and get some skills and a paid work-study job.

* http://www.army.mil/ -- Many of you probably don't like this, but it's probably the most successful organization at turning lazy teens into productive citizens, however, it carries the risk of death or dismemberment. My point, is there are many options.

To split hairs over the minimum wage because 95% of 1% of kids (the approximate dropout rate) don't have jobs is nonsense. So, because these kids who did not do their civic duty are unemployed means we should lower labor standards for everyone else, including those who have to feed families, such as the parents of these very children? It can only worsen the situation.

Min wage is already so low that it is not the driver to whether someone is getting hired or not. The big corporations that run most of the "small" businesses now, can pay. They just need to know they're indeed getting a valuable worker.

The other thing is, a lot of that 95% can be accounted for by kids who don't want a job. They'd rather play x-box, or work as a foot soldier in the local gang.

We have programs for this. Job corps, seriously. There's nothing stopping young people from working here. The jobs exist. The skills do not.


I think that there is value in dropping the minimum wage for teenagers dramatically, regardless of these issues. Giving teenagers another place to get yelled at for not working hard enough (besides just school and home) is clearly beneficial (as you note about the military) but the options that you list are not sufficient. They require too much of a lifestyle change which makes those programs seem inaccessible. Letting the sandwich shop down the road yell at teenagers for $4/hr is better than having teenagers go halfway across the state with Job Corps.

Teenagers in rural areas already have plenty of opportunities to be employed below minimum wage, but these opportunities largely do not exist right now in urban areas. I suspect this partially accounts for the employment discrepancies in rural and urban areas.

(Dropping the minimum wage for this should only be done for teenagers who have more social safety-nets than adults.)


> They require too much of a lifestyle change which makes those programs seem inaccessible. Letting the sandwich shop down the road yell at teenagers for $4/hr is better than having teenagers go halfway across the state with Job Corps.

A lot of these kids need exactly that - a change of environment. I have a second cousin whose mother is always getting fired from minimum wage jobs, is constantly getting kicked out of apartments, and couldn't provide him with a stable home life. His dad is long gone.

Job Corps provided him with a place to stay, training, and a job. But the best part of it was that he had to move an hour and a half away, close enough to visit but far enough where he wouldn't be distracted by all the trouble in our crime-ridden and poverty stricken city. They also teach personal skills and things like money management.

If you don't get the kid out of the ghetto, you'll have trouble getting the ghetto out of the kid.


Oh sure, a lot of those kids definitely need the Job Corps. I wouldn't support discontinuing that program.

I'm just saying that the Job Corps isn't a great fit for all teenagers, and that all teenagers would benefit from working at any sort of job (and that a lower minimum wage for teenagers would facilitate this. I think that work for the sake of work is good for teenagers, but that minimum wage gets in the way of this).


I agree, the sandwich shop up the road did yell at me when I worked there for lower than minimum wage under the table at more than one shop.

What jgreco suggests is good, as long as it's just for teens and doesn't go lower than it currently is (i.e., lets raise it for adults, since they often have to feed children)


>dropping the minimum wage for teenagers

I can agree to this, except, lets do it this way: lets leave the minimum wage where it is for teens, and raise it for everyone else. That'd also solve the problem of adults working jobs that are meant for teens.


Aye, that is a great way to do it. Probably easier to implement it that way from a political point of view.


Who's in charge of deciding which jobs are "meant" for teens?


It wouldn't be such a big deal to prevent adults from taking these jobs, it just needs to be more attractive for companies to give them to students. So, the lower wage alone would be a good enough incentive for them.

Once the minimum wage was lower for "school jobs" the market would efficiently define which jobs can be given to school kids and which can't.


Wouldn't you have two problems then?


Why, is the law going to be updated with a regular expression?


1) Increased unemployment in the adult segment, due to teenagers stealing their jobs.

2) Need for government agency to enforce the age requirements. Modeled after immigration authority, such agency would need to be able to raid the businesses in order to do age verification, to ensure that teenager-compatible jobs are not given to adults. Also, such agency needs to ensure that people are fired on the day they reach 20th birthday, and thus lose the "teen" status.


I don't think you need the second part - the only requirement is that the older people be payed more.


If they have not received raises after spending many years with the business, then it's unlikely that their years of experience matter.

And if their years of experience do not matter, they would be replaced with lower-cost younger labor well in advance of them reaching particular age group considered "older".


This is precisely the policy that we have here in the UK. https://www.gov.uk/national-minimum-wage-rates


I found myself wondering about this as well. Some of this is quite likely legitimate unemployment, but I'm wondering what percent is laziness.

That said, it's pretty easy as a middle-income white guy to cast judgement on people living in a situation I can't even dream of understanding. This is a pretty complex subject.


Are you saying that the high school dropout rate is 1%? Because that's not anywhere close to being correct. It's over 25% in the United States according to this: http://www.theatlantic.com/national/archive/2013/06/high-sch...


Dropping out is not the opposite of not graduating; you can continue trying to graduate for several years. The actual dropout rate is 7.4%: nces.ed.gov/fastfacts/display.asp?id=16


Thanks for the correction. The Atlantic article should have specified that they meant the four year graduation rate. I did think that 25% seemed too high, but I knew that 1% was much too low.


I directly disagree. Lowering minimum wage reduces the risk of hiring an unskilled and lazy teenager to train them in a job.

When you look at one hour of one person's work, the difference between $9, $7, $5 and $3 an hour seems trivial. Surely the employer has a five dollar bill sitting around, right? But when you look at full work weeks of time, plus the costs of training the job, multiplied by all of the employees the company will hire, the difference in hourly wages emerges. And, equally importantly, the employer perceives this difference and given time will react rationally to a lower minimum wage. For every dollar of "labor standards" achieved, the minimum wage imposes a skill and manners floor with no ladder beneath it for people who need to get a leg up into the employment system with experience. Lowering this floor lets an employer take a chance on someone or even take a chance on two people where only one could be hired previously.

Job Corps, FAFSA grants, and the military all essentially pay below minimum wage for job training without economic benefit, i.e., productivity (ignoring the various effects caused by foreign wars.) Additionally, while the training provided is supposed to bridge over neatly to employment, it never does perfectly and sometimes does not match real-world needs at all. It would be better to just let companies directly pay lower wages and also provide the training by having the employee learn the actual job instead of a simulated job.


> But when you look at full work weeks of time, plus the costs of training the job, multiplied by all of the employees the company will hire, the difference in hourly wages emerges.

Not really. You won't train them with a $3 / hour worker. Their timesheet won't be done by a $3 / hour worker. Their workspace and equipment will cost more than $3 / hour. If they piss off a customer, or steal from the till, or break stuff, or bully other employees, or get you sued, the cost will be the same.

People in non-tech fields have to practically beg to get an internship which pays nothing. OK, internships should be about training, not work (it's the law), but we all know that's often a load of crap. That's because all staff have overhead, so even a free worker costs quite a bit.


I was hoping that was all understood in my post since it's all obvious to anyone who has been in business. If a business cannot tolerate unskilled workers or has limited hiring spots due to a limited number of machines, etc., then they need to hire skilled workers immediately and so are not part of what we are considering.

As someone who has managed a variety of budgets, I assure you that the wage portion of an employee's total cost is still meaningful.


Except the military and Job Corps provide room and board. I suppose if a student was really good he could get room & board from a college and scrape by during the summers, but it's not the same deal.


Lowering the minimum wage isn't going to make an unskilled and lazy teenager useful.

Correct. They'll just be cheaper. If value > cost, then it's worth it for a business to pursue.

If something is only slightly useful, then it's still useful and still worth having at some cost.


Perhaps the labor law exceptions for farming jobs explain some of the geographic discrepancy.

When I was a teenager for a time I was (legally) employed below standard minimum wage working as a farm laborer.


Interesting point. Also, black youths overwhelmingly live in urban areas where labor laws are more strictly enforced.


If minimum wage law was such a determining factor why is it countries with a higher minimum wages than the USA have lower (including youth) unemployment rates.

I'll give you my take on this.

What creates employment is consumption and people earning next to nothing don’t consume.

So if you cut the minimum wage all you'll end up doing is reduce the overall consumption, which in turn will drive up unemployment.

The truth might in fact be the reason the USA economy is so stuffed is because the minimum wage has not gone up in decades leading to greatly reduced levels of consumption.


The countries with the highest minimum wages are the democratic socialist states of Europe which all have much higher youth unemployment rates than here. One of the lowest youth unemployment rates in Europe is Germany, which has no minimum wage law.


Whether northern Europe has a minimum wage or not is a bit complex. Neither Germany nor the Nordic countries have statutory minimum wages, but they have very corporatist labor sectors, with strong labor-union participation organized along the lines of broad confederations (giant labor confederations negotiate ground agreements with giant employer confederations). Some of that is entrenched in law, e.g. in most of Scandinavia the workers are guaranteed representatives on certain bodies that can veto things like changes to employment contracts.

So a negotiated minimum wage still covers a large proportion of jobs. In Denmark somewhere around 80% of jobs are covered by the negotiated minimum wage agreements, which are typically set at $20/hr. The main exceptions making up the 20% are small mom-and-pop stores (kebab shops and such) who don't join the employer confederation and therefore aren't subject to the agreements. But all jobs at large companies, like supermarket clerks and janitors, are covered by the minimum wage.

In Denmark this was basically the social-democratic outcome of the late-19th-century labor strife: the moderate wing of the labor movement reached an agreement in September 1899 with moderates within the business community to adopt a consensus-based approach to workplace conditions and pay. That held, so both the laissez-faire capitalist advocates and the militantly socialist portion of the labor movement were sidelined for a century or so.



Here in Australia we have a minimum wage twice that of the USA and our unemplyment is 5.6 percent.


Actually, I'd argue it doesn't matter what the minimum wage is. Today we see that the minimum wage just means a lot of people aren't working, and if you dropped minimum wage and gave them something to do hourly for pennies they still would have nothing.

If you raised minimum wage, you would just drive McDonalds to automate away more of its menial jobs and make Walmart replace all the cashiers with self checkouts, which I think is good (eliminate the useless wastes of peoples time) but it doesn't mean more people are employed for labor.

The real issue is that the distribution of economic resources has been direly concentrated in very few for 30 years, and they are now the predominant drivers of economic activity because nobody else has any prosperity anymore. It is a compound effect that the people with the money to hire and employ others have nothing to hire or employ them for, and thus they don't, instead they push their money into avenues that make profit off of regulatory exploitation rather than productivity (big banks & the fed, fortune 500 investments, lobbying for monopolies to get artificial markets).


The problem with increasing minimum wage is that the more you increase it, the more incentive you give a company for further ramping up mechanization even though the initial costs are generally high upfront.




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