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The federal minimum wage is only $7.25. By paying $10, they are paying 38% more than the minimum. Even at 9 they are 24% above the minimum. I expect that the
by cpwright 9y ago
The federal minimum wage is only $7.25. By paying $10, they are paying 38% more than the minimum. Even at 9 they are 24% above the minimum. I expect that they would prefer a minimum wage exactly equal to what they pay as a minimum, because that would disadvantage less efficient competitors.
- dragonwriter 9y ago> I expect that they would prefer a minimum wage exactly equal to what they pay as a minimum, because that would disadvantage less efficient competitors. No, it would disadvantage competitors that could get by with labor with lower market value per unit of labor, which are not necessarily less efficient (if they were delivering the same output per unit of labor using less expensive labor, they'd be more efficient, for example, not less.)
- brianbreslin 9y agoI would be more interested to see how each $.50 in hourly wage raises translates to improved efficiency, employee churn, and reduction in employee theft.