It would pay a mortgage, keep the utilities on and put food on the table.
Today, a minimum-wage job in America will not keep a mama and a baby out of poverty. Her implication here is that policymakers should set the federal minimum wage not according to the health of the economy, or its impact on labor markets, but to maintain the purchasing power of full-time minimum wage employees. Other economists and thinkers use different comparator metrics. In his testimony before the U.
This bulletin does not dispute those claims.
For What It’s Worth
But it argues that such comparisons are not appropriate for judging an appropriate level for minimum wage rates. Economy-wide labor productivity has risen faster than the federal minimum wage over the past 50 years. Given a basic tenet of economics is that compensation tracks productivity levels i.
Although Dube stressed that he was not suggesting that the minimum wage be increased to that level, the comparison is clearly used to imply that the minimum wage could be increased significantly without adverse consequences. The comparison implies that the underlying productivity of the affected workers has been increasing, but their pay has not, perhaps because of increased market power on the part of employers.
Comparing the federal minimum wage to aggregate productivity trends in this way is problematic, though, for two reasons. First, state, local, and city governments across the country already often set minimum wages significantly higher than the federal level, particularly in higher-productivity regions.
Justification in Protest Publics: The Homeless Workers’ Movement in Brazil’s Crisis
In cities, wage floors are often higher still. Country-wide productivity statistics mask vast productivity discrepancies across regions. But a more important flaw in linking the minimum wage to economy-wide labor productivity is that the productivity performance of all workers tells us little about the productivity performance of minimum wage workers.
Different industries, different companies, and even different workers within organizations are likely to experience different productivity growth rates over time. A productivity growth series solely for minimum wage workers is not available and would be nearly impossible to put together. Examining industry productivity data from through , however, highlights that using aggregate productivity trends to estimate what the minimum wage level should be is problematic. Yet labor productivity in the restaurant sector often regarded as a better proxy for a typical minimum wage industry rose by an average of just 0.
Some subsectors have had even worse productivity performances.
Browse more videos
None of this proves that current minimum wage rates in many parts of the country are too high. What this scenario analysis does show, though, is the danger of spurious comparisons between economy-wide productivity and the level of the federal minimum wage.
- Armies of the Vietnam War (Men-at-Arms, Volume 143).
- Account Options.
- Indias Waters: Environment, Economy, and Development!
- On Justification: Economies of Worth, Book by Luc Boltanski (Paperback) | albrewhjechoulo.cf.
- Being Human: The Search for Order?
Making the link between the two explicit might lead us to deliver much higher wage floors than are justified by the productivity of workers in certain sectors or regions, causing significant localized job losses or other economic adjustments. Minimum wage hike campaigners often compare the federal minimum wage to living costs. In practical policy, index linking the minimum wage so that it tracks the general price level in the economy therefore makes some economic sense in theory even if, in reality, recent evidence suggests that such linking leads to larger negative effects on employment than nominal adjustments.
The real level of the federal minimum wage today is similar to that seen in , , and This, clearly, has not been the call of numerous administrations and Congresses, which have considered that level to have deleterious labor market consequences and so have allowed the minimum wage to fall in real terms to reduce those consequences.
Allowing the real minimum wage to fall by keeping its nominal value fixed is probably a more politically palatable tool than complete abolition of the minimum wage. The long and short, then, is this: index linking the minimum wage to the price level makes sense if you are confident that the wage is currently at the right real level to alleviate any market failure.
But any claim as to the latter statement is controversial, as numerous surveys of economists show. It makes no sense whatsoever, though, to imply that the federal minimum wage should be raised to reimburse workers for highly localized living costs such as expensive housing or childcare. High living costs are, of course, a very underdiscussed cause of economic hardship in the United States. My own research has found that typical poor American households face high prices for essential goods and services because of misguided interventions and regulations.
Rather than tackle the structural causes of these high prices, minimum wage hike campaigners want businesses to bear the cost of compensating workers for their high living expenses. That is not economically sensible. Another metric used by advocates for higher federal minimum wages is to compare earnings for full-time minimum wage workers with various poverty thresholds which differ by household composition.
The rationale here, again, is that the minimum wage should be used for targeted poverty reduction rather than just to correct market failure. In: Belyaeva N.
Societies and Political Orders in Transition. Springer, Cham. Their expectant analyses did not bear out, however, as a political and economic crisis developed just as Brazil was gearing up to host two mega-events, the World Cup in and the Olympic Games in This paper has two aims.
On Justification: Economies of Worth - PDF Free Download
The sociology of critical capacity thus sought to theorise the rationalisation of judgements, the means by which agreement is reached between disputants and the moral dimensions of cooperation. These include the market polity whose key theoretician is Adam Smith , the inspired polity St. Augustine , the polity of renown Hobbes , the civic polity Rousseau and the industrial polity Saint-Simon. The sociology of critical capacity is not only concerned with discursive legitimacy, however. The industrial world is composed of factories and manpower objects , for instance, whose products may be compared according to accepted criteria.
There may also be compromises between the orders in any particular evaluation. A product made in a factory, to take one example, may function excellently but be energy inefficient and thus susceptible to criticism according to green evaluative criteria.
Related On Justification: Economies of Worth
Copyright 2019 - All Right Reserved