Economic Consequences of the Minimum Wage — Videos

Posted on March 10, 2013. Filed under: Blogroll, Books, Communications, Economics, Employment, Federal Government, government, government spending, Law, liberty, Life, Links, media, Microeconomics, People, Philosophy, Politics, Psychology, Public Sector, Rants, Raves, Regulations, Security, Unemployment, Unions, Wealth | Tags: , , |

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Minimum-Wage

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John Stossel – Real World Effects Of Minimum Wage

Increasing Minimum Wage Good or Bad for Small Business?

The Truth about the Minimum Wage

Milton Friedman on Minimum Wage

[yourtube=http://www.youtube.com/watch?v=ca8Z__o52sk]

Power of the Market – Minimum Wage

The Job-Killing Impact of Minimum Wage Laws

Both Sides of The Minimum Wage Debate

Walter E Williams – Davis Bacon Sellout

Williams with Sowell – Minimum Wage

Walter E Williams – Minimum Wage as a Racist Tool

Walter Williams: Up From the Projects

State Against Blacks – Conservative Dr. Walter Williams

Characteristics of Minimum Wage Workers: 2011

In 2011, 73.9 million American workers age 16 and over were paid at hourly rates, representing 59.1 percent of all wage and salary workers.1 Among those paid by the hour, 1.7 million earned exactly the prevailing Federal minimum wage of $7.25 per hour. About 2.2 million had wages below the minimum.2 Together, these 3.8 million workers with wages at or below the Federal minimum made up 5.2 percent of all hourly-paid workers. Tables 1 through 10 present data on a wide array of demographic and socioeconomic characteristics for hourly-paid workers earning at or below the Federal minimum wage. The following are some highlights from the 2011 data.

  • Minimum wage workers tend to be young. Although workers under age 25 represented only about one-fifth of hourly-paid workers, they made up about half of those paid the Federal minimum wage or less. Among employed teenagers paid by the hour, about 23 percent earned the minimum wage or less, compared with about 3 percent of workers age 25 and over. (See table 1 and table 7.)
  • About 6 percent of women paid hourly rates had wages at or below the prevailing Federal minimum, compared with about 4 percent of men. (See table 1.)
  • About 5 percent of White hourly-paid workers earned the Federal minimum wage or less, compared with about 6 percent of Blacks and about 3 percent of Asians. Among hourly-paid workers of Hispanic ethnicity, about 5 percent earned the minimum wage or less. (See table 1.)
  • Among hourly-paid workers age 16 and over, about 11 percent of those who had less than a high school diploma earned the Federal minimum wage or less, compared with about 5 percent of those who had a high school diploma (with no college) and about 2 percent of college graduates. (See table 6.)
  • Never-married workers, who tend to be young, were more likely than married workers to earn the Federal minimum wage or less (about 9 percent versus about 2 percent). (See table 8.)
  • Part-time workers (persons who usually work less than 35 hours per week) were more likely than full-time workers to be paid the Federal minimum wage or less (about 13 percent versus about 2 percent). (See table 1 and table 9.)
  • By major occupational group, the highest proportion of hourly-paid workers earning at or below the Federal minimum wage was in service occupations, at 13 percent. About 6 in 10 workers earning the minimum wage or less in 2011 were employed in service occupations, mostly in food preparation and serving related jobs. (See table 4.)
  • The industry with the highest proportion of workers with hourly wages at or below the Federal minimum wage was leisure and hospitality (22 percent). About one-half of all workers paid at or below the Federal minimum wage were employed in this industry, primarily in restaurants and other food services. For many of these workers, tips and commissions supplement the hourly wages received. (See table 5.)
  • The states with the highest proportions of hourly-paid workers earning at or below the Federal minimum wage were Georgia, Mississippi, and Texas (all between 8 and 10 percent). The states with the lowest percentage of workers earning at or below the Federal minimum wage were Oregon, California, Washington, and Alaska (all under 2 percent). It should be noted that some states have minimum wage laws establishing standards that exceed the Federal minimum wage. (See table 2 and table 3.)
  • The proportion of hourly-paid workers earning the prevailing Federal minimum wage or less declined from 6.0 percent in 2010 to 5.2 percent in 2011. This remains well below the figure of 13.4 percent in 1979, when data were first collected on a regular basis. (See table 10.)

Source: U.S. Department of Labor, Bureau of Labor Statistics (BLS). These data on minimum wage earners are derived from the Current Population Survey (CPS), a monthly nationwide survey of households. Data in this summary are 2011 annual averages.

1 Data are for wage and salary workers age 16 and over and refer to earnings on a person’s sole or principal job. Hourly earnings for hourly-paid workers do not include overtime pay, commissions, or tips received. All self-employed persons are excluded whether or not their businesses are incorporated.

2 The presence of a sizable number of workers with wages below the Federal minimum does not necessarily indicate violations of the Fair Labor Standards Act, as there are exemptions to the minimum wage provisions of the law. The estimates of the numbers of minimum and subminimum wage workers presented in the accompanying tables pertain to workers paid at hourly rates; salaried and other non-hourly workers are excluded. As such, the actual number of workers with earnings at or below the prevailing Federal minimum is undoubtedly understated. Research has shown that a relatively small number and share of salaried workers and others not paid by the hour have earnings that, when translated into hourly rates, are at or below the minimum wage. However, BLS does not routinely estimate hourly earnings for non-hourly workers because of data concerns that arise in producing these estimates.


Characteristics of Minimum Wage Workers: 2011, Tables 1 – 10

Characteristics of Minimum Wage Workers: 2011 (PDF)

Table 1. Employed wage and salary workers paid hourly rates with earnings at or below the prevailing Federal minimum wage by selected characteristics, 2011 annual averages
Characteristic Number of workers
(in thousands)
Percent distribution Percent of workers paid hourly rates
Total paid hourly rates At or below minimum wage Total paid hourly rates At or below minimum wage At or below minimum wage
Total At minimum wage Below minimum wage Total At minimum wage Below minimum wage Total At minimum wage Below minimum wage
AGE AND SEX
Total, 16 years and over 73,926 3,829 1,677 2,152 100.0 100.0 100.0 100.0 5.2 2.3 2.9
16 to 24 years 14,436 1,896 893 1,003 19.5 49.5 53.2 46.6 13.1 6.2 6.9
16 to 19 years 3,936 899 491 408 5.3 23.5 29.3 19.0 22.8 12.5 10.4
25 years and over 59,490 1,933 784 1,149 80.5 50.5 46.8 53.4 3.2 1.3 1.9
Men, 16 years and over 36,457 1,433 648 785 49.3 37.4 38.6 36.5 3.9 1.8 2.2
16 to 24 years 7,290 787 388 399 9.9 20.6 23.1 18.5 10.8 5.3 5.5
16 to 19 years 1,872 373 212 161 2.5 9.7 12.6 7.5 19.9 11.3 8.6
25 years and over 29,167 647 260 387 39.5 16.9 15.5 18.0 2.2 0.9 1.3
Women, 16 years and over 37,469 2,395 1,029 1,366 50.7 62.5 61.4 63.5 6.4 2.7 3.6
16 to 24 years 7,147 1,109 505 604 9.7 29.0 30.1 28.1 15.5 7.1 8.5
16 to 19 years 2,064 526 279 247 2.8 13.7 16.6 11.5 25.5 13.5 12.0
25 years and over 30,323 1,286 524 762 41.0 33.6 31.2 35.4 4.2 1.7 2.5
RACE, SEX, AND HISPANIC OR LATINO ETHNICITY
White (1) 59,314 3,006 1,258 1,748 80.2 78.5 75.0 81.2 5.1 2.1 2.9
Men 29,743 1,108 484 624 40.2 28.9 28.9 29.0 3.7 1.6 2.1
Women 29,571 1,898 774 1,124 40.0 49.6 46.2 52.2 6.4 2.6 3.8
Black or African American (1) 9,523 577 324 253 12.9 15.1 19.3 11.8 6.1 3.4 2.7
Men 4,252 222 117 105 5.8 5.8 7.0 4.9 5.2 2.8 2.5
Women 5,271 356 208 148 7.1 9.3 12.4 6.9 6.8 3.9 2.8
Asian (1) 3,037 99 36 63 4.1 2.6 2.1 2.9 3.3 1.2 2.1
Men 1,425 41 13 28 1.9 1.1 0.8 1.3 2.9 0.9 2.0
Women 1,612 58 23 35 2.2 1.5 1.4 1.6 3.6 1.4 2.2
Hispanic or Latino (1) 13,264 720 340 380 17.9 18.8 20.3 17.7 5.4 2.6 2.9
Men 7,703 326 154 172 10.4 8.5 9.2 8.0 4.2 2.0 2.2
Women 5,561 394 186 208 7.5 10.3 11.1 9.7 7.1 3.3 3.7
FULL- AND PART-TIME STATUS AND SEX
Full-time workers (2) 53,594 1,274 522 752 72.5 33.3 31.1 34.9 2.4 1.0 1.4
Men 29,292 501 205 296 39.6 13.1 12.2 13.8 1.7 0.7 1.0
Women 24,302 773 317 456 32.9 20.2 18.9 21.2 3.2 1.3 1.9
Part-time workers (2) 20,199 2,545 1,153 1,392 27.3 66.5 68.8 64.7 12.6 5.7 6.9
Men 7,103 932 443 489 9.6 24.3 26.4 22.7 13.1 6.2 6.9
Women 13,096 1,615 711 904 17.7 42.2 42.4 42.0 12.3 5.4 6.9
Footnotes:
(1) Estimates for the above race groups (White, Black or African American, and Asian) do not sum to totals because data are not presented for all races. Persons whose ethnicity is identified as Hispanic or Latino may be of any race.
(2) The distinction between full- and part-time workers is based on hours usually worked. These data will not sum to totals because full- or part-time status on the principal job is not identifiable for a small number of multiple jobholders. Full time is 35 hours or more per week; part time is less than 35 hours.

NOTE: Data exclude all self-employed persons whether or not their businesses are incorporated.

http://www.bls.gov/cps/minwage2011tbls.htm#1

Labor Force Statistics from the Current Population Survey

Series Id: LNS14000012
Seasonally Adjusted
Series title: (Seas) Unemployment Rate – 16-19 yrs.
Labor force status: Unemployment rate
Type of data: Percent or rate
Age: 16 to 19 years

unemployment_teenagers

Year Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Annual
1948 8.5 10.0 10.5 9.5 7.0 9.3 9.7 9.6 8.8 8.5 9.1 8.5
1949 10.0 10.6 11.9 13.2 13.4 13.8 14.3 15.0 14.6 15.8 14.0 15.4
1950 15.2 15.2 14.3 12.0 13.3 12.2 11.2 10.7 10.9 10.3 9.5 11.1
1951 8.5 8.1 8.3 7.9 6.7 8.3 8.7 8.2 8.3 7.7 9.5 7.6
1952 9.3 8.3 8.2 7.6 8.9 8.4 8.8 8.5 8.9 8.4 8.2 7.6
1953 6.9 6.7 6.7 7.1 6.4 6.9 7.3 7.4 7.3 9.7 8.6 11.8
1954 12.1 13.5 13.0 13.6 13.4 10.5 12.9 14.0 14.0 12.2 11.4 12.6
1955 11.7 11.3 11.0 10.7 10.9 10.8 10.4 11.5 11.3 11.0 11.7 11.0
1956 10.6 11.4 11.5 10.9 11.9 12.2 11.2 10.1 9.8 10.1 12.6 9.7
1957 11.6 10.5 11.2 11.1 11.4 11.7 11.8 11.5 11.0 10.9 13.4 13.1
1958 14.4 14.6 14.7 17.2 16.3 15.4 17.9 16.0 17.9 16.0 15.9 14.9
1959 14.0 12.9 13.6 15.0 14.3 13.9 14.5 16.1 14.9 15.8 15.1 15.3
1960 14.6 13.1 15.6 14.2 13.9 14.6 13.9 15.3 14.5 16.1 14.7 16.4
1961 17.1 17.4 17.1 16.4 15.8 16.6 17.3 17.1 18.0 16.9 16.0 15.3
1962 16.2 16.0 15.1 15.1 14.2 13.6 13.9 14.1 14.5 14.3 16.3 14.4
1963 15.8 17.7 17.1 16.8 18.7 17.2 18.1 16.1 17.4 17.1 17.7 16.3
1964 16.7 15.8 16.3 17.0 16.4 16.8 14.7 16.7 15.7 15.8 15.6 17.1
1965 16.8 16.7 15.8 16.2 14.8 15.3 14.5 13.9 14.7 14.5 13.0 13.3
1966 13.0 12.4 13.1 13.0 13.6 13.0 12.9 12.4 12.8 12.6 11.8 12.1
1967 11.9 12.9 11.6 12.1 12.8 12.9 13.0 13.4 12.9 13.7 13.8 13.0
1968 12.0 12.9 12.7 11.8 12.5 13.9 13.8 12.0 12.0 11.8 12.2 12.7
1969 12.0 11.9 12.3 12.0 12.4 12.2 12.8 12.2 12.6 12.6 11.6 11.8
1970 13.5 13.3 13.4 14.7 14.2 16.3 14.7 15.7 16.2 16.7 17.4 17.1
1971 16.8 16.3 16.9 16.3 16.8 17.7 17.7 16.8 16.7 16.9 16.9 16.9
1972 16.9 18.0 17.2 16.5 15.3 15.9 15.6 16.5 16.3 15.8 15.7 15.6
1973 13.7 15.3 14.3 15.5 14.9 13.8 14.3 14.0 14.7 14.4 15.0 14.6
1974 14.6 14.9 14.9 14.3 15.4 16.3 16.8 14.9 17.0 17.2 17.8 18.2
1975 19.5 19.4 19.9 19.9 20.4 20.9 20.7 20.7 19.5 19.8 19.0 19.8
1976 19.6 19.0 18.9 19.5 18.6 18.5 18.3 19.6 18.6 19.0 19.2 19.1
1977 18.9 18.4 18.6 18.0 17.8 18.8 17.5 17.4 18.0 17.2 17.2 15.5
1978 16.7 17.2 17.3 16.6 16.0 15.4 16.5 15.7 16.4 16.1 16.3 16.7
1979 16.1 16.1 15.9 16.3 16.1 15.7 15.6 16.5 16.5 16.5 15.9 16.2
1980 16.5 16.6 16.3 16.2 18.6 18.9 19.1 18.9 18.0 18.4 18.5 17.6
1981 19.1 19.3 19.2 18.8 19.1 19.8 18.6 18.8 19.7 20.3 21.3 21.1
1982 22.0 22.6 21.8 22.8 22.8 22.9 24.0 23.7 23.6 23.7 24.1 24.1
1983 23.1 22.8 23.5 23.4 22.8 24.0 22.8 22.9 21.7 21.4 20.2 19.9
1984 19.5 19.4 19.8 19.2 18.7 18.2 18.8 18.7 19.2 18.6 17.7 18.8
1985 18.8 18.3 18.2 17.5 18.5 18.5 20.2 17.9 17.9 20.0 18.3 19.1
1986 18.1 18.8 18.2 19.2 18.6 19.2 18.4 18.0 18.4 17.7 18.1 17.5
1987 17.7 18.0 17.9 17.3 17.4 16.5 15.8 15.9 16.2 17.3 16.6 16.0
1988 16.1 15.6 16.6 16.0 15.3 14.2 14.8 15.4 15.5 15.1 13.9 14.8
1989 16.4 15.0 13.9 14.6 14.8 15.7 14.2 14.6 15.2 15.0 15.5 15.3
1990 14.8 15.0 14.3 14.7 15.0 14.3 15.0 16.3 16.4 16.5 17.1 17.4
1991 18.6 17.4 18.3 17.8 18.8 18.5 19.4 18.9 18.8 19.1 19.0 20.3
1992 19.2 20.1 20.3 18.5 20.1 23.0 20.8 19.9 21.0 18.3 20.5 19.8
1993 19.9 19.7 19.7 19.5 19.8 19.9 18.4 18.4 18.2 18.7 18.5 17.9
1994 18.3 18.0 18.0 19.1 18.0 17.6 17.6 17.3 17.5 17.5 15.6 17.0
1995 16.5 17.4 16.1 17.5 17.5 17.1 18.2 17.3 17.6 17.4 17.5 18.0
1996 17.7 16.8 17.1 17.1 16.8 16.2 17.1 16.8 15.6 16.3 16.8 16.6
1997 16.8 17.1 16.4 15.9 16.0 16.8 17.1 16.1 16.1 15.1 14.8 14.0
1998 13.9 14.5 14.8 13.5 14.8 14.9 14.6 14.7 15.0 15.7 14.7 13.5
1999 15.2 13.9 14.2 14.2 13.3 13.9 13.4 13.3 14.8 13.8 13.9 13.4
2000 12.7 13.8 13.3 12.6 12.8 12.3 13.4 14.0 13.0 12.8 13.0 13.2
2001 13.8 13.7 13.8 13.9 13.4 14.2 14.4 15.6 15.2 16.0 15.9 17.0
2002 16.5 16.0 16.6 16.7 16.6 16.7 16.8 17.0 16.3 15.1 17.1 16.9
2003 17.2 17.2 17.8 17.7 17.9 19.0 18.2 16.6 17.6 17.2 15.7 16.2
2004 17.0 16.5 16.8 16.6 17.1 17.0 17.8 16.7 16.6 17.4 16.4 17.6
2005 16.2 17.5 17.1 17.8 17.8 16.3 16.1 16.1 15.5 16.1 17.0 14.9
2006 15.1 15.3 16.1 14.6 14.0 15.8 15.9 16.0 16.3 15.2 14.8 14.6
2007 14.8 14.9 14.9 15.9 15.9 16.3 15.3 15.9 15.9 15.4 16.2 16.8
2008 17.8 16.6 16.1 15.9 19.0 19.2 20.7 18.6 19.1 20.0 20.3 20.5
2009 20.7 22.2 22.2 22.2 23.4 24.7 24.3 25.0 25.9 27.1 26.9 26.6
2010 26.0 25.4 26.2 25.5 26.6 26.0 26.0 25.7 25.8 27.2 24.6 25.1
2011 25.5 24.0 24.4 24.7 24.0 24.7 24.9 25.2 24.4 24.1 23.9 22.9
2012 23.4 23.7 25.0 24.9 24.4 23.7 23.9 24.5 23.7 23.7 23.6 23.5
2013 23.4 25.1

Federal Minimum Wage Rates, 1955–2012

Value of the
minimum wage
Value of the
minimum wage
Value of the
minimum wage
Year Current
dollars
Constant
(1996)
dollars1
Year Current
dollars
Constant
(1996)
dollars1
Year Current
dollars
Constant
(1996)
dollars1
1955 $0.75 $4.39 1983 3.35 5.28 2011 7.25 5.06
1956 1.00 5.77 1984 3.35 5.06 2012 7.25 4.97
1957 1.00 5.58 1985 3.35 4.88
1958 1.00 5.43 1986 3.35 4.80
1959 1.00 5.39 1987 3.35 4.63
1960 1.00 5.30 1988 3.35 4.44
1961 1.15 6.03 1989 3.35 4.24
1962 1.15 5.97 1990 3.80 4.56
1963 1.25 6.41 1991 4.25 4.90
1964 1.25 6.33 1992 4.25 4.75
1965 1.25 6.23 1993 4.25 4.61
1966 1.25 6.05 1994 4.25 4.50
1967 1.40 6.58 1995 4.25 4.38
1968 1.60 7.21 1996 4.75 4.75
1969 1.60 6.84 1997 5.15 5.03
1970 1.60 6.47 1998 5.15 4.96
1971 1.60 6.20 1999 5.15 4.85
1972 1.60 6.01 2000 5.15 4.69
1973 1.60 5.65 2001 5.15 4.56
1974 2.00 6.37 2002 5.15 4.49
1975 2.10 6.12 2003 5.15 4.39
1976 2.30 6.34 2004 5.15 4.28
1977 2.30 5.95 2005 5.15 4.14
1978 2.65 6.38 2006 5.15 4.04
1979 2.90 6.27 2007 5.85 4.41
1980 3.10 5.90 2008 6.55 4.77
1981 3.35 5.78 2009 7.25 5.30
1982 3.35 5.78 2010 7.25 5.22
1. Adjusted for inflation using the CPI-U (Consumer Price Index for All Urban Consumers).
Source: U.S. Department of Labor. Web: http://www.dol.gov/esa/whd/flsa/.

Information Please® Database, © 2012 Pearson Education, Inc. All rights reserved.

Read more: Federal Minimum Wage Rates, 1955–2012 | Infoplease.com http://www.infoplease.com/ipa/A0774473.html#ixzz2NH3x9TRa

Wage and Hour Division (WHD)

History of Federal Minimum Wage Rates Under the Fair Labor Standards Act, 1938 – 2009

The table of federal minimum wage rates under the Fair Labor Standards Act, 1938 – 2009 is also available in a PDF Version. In order to view and/or print PDF documents you must have a PDF viewer (e.g., Adobe Acrobat Reader v5 or later) available on your workstation.

Minimum hourly wage of workers in jobs first covered by

Effective Date 1938 Act 1 1961 Amendments 2 1966 and Subsequent
Amendments3
Nonfarm Farm
Oct 24, 1938 $0.25
Oct 24, 1939 $0.30
Oct 24, 1945 $0.40
Jan 25, 1950 $0.75
Mar 1, 1956 $1.00
Sep 3, 1961 $1.15 $1.00
Sep 3, 1963 $1.25
Sep 3, 1964 $1.15
Sep 3, 1965 $1.25
Feb 1, 1967 $1.40 $1.40 $1.00 $1.00
Feb 1, 1968 $1.60 $1.60 $1.15 $1.15
Feb 1, 1969 $1.30 $1.30
Feb 1, 1970 $1.45
Feb 1, 1971 $1.60
May 1, 1974 $2.00 $2.00 $1.90 $1.60
Jan. 1, 1975 $2.10 $2.10 $2.00 $1.80
Jan 1, 1976 $2.30 $2.30 $2.20 $2.00
Jan 1, 1977 $2.30 $2.20
Jan 1, 1978 $2.65 for all covered, nonexempt workers
Jan 1, 1979 $2.90 for all covered, nonexempt workers
Jan 1, 1980 $3.10 for all covered, nonexempt workers
Jan 1, 1981 $3.35 for all covered, nonexempt workers
Apr 1, 19904 $3.80 for all covered, nonexempt workers
Apr 1, 1991 $4.25 for all covered, nonexempt workers
Oct 1, 1996 $4.75 for all covered, nonexempt workers
Sep 1, 19975 $5.15 for all covered, nonexempt workers
Jul 24, 2007 $5.85 for all covered, nonexempt workers
Jul 24, 2008 $6.55 for all covered, nonexempt workers
Jul 24, 2009 $7.25 for all covered, nonexempt workers

Where to Obtain Additional Information

This publication is for general information and is not to be considered in the same light as official statements of position contained in the regulations.

For additional information, visit our Wage-Hour website: http://www.wagehour.dol.gov and/or call our Wage-Hour toll-free information and helpline, available 8am to 5pm in your time zone, 1-866-4USWAGE (1-866-487-9243).


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