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And what's the income reduction (in %) for those unlucky 10 percenters who end up jobless?
by tudorconstantin 9y ago
And what's the income reduction (in %) for those unlucky 10 percenters who end up jobless?
- mrow84 9y agoAs we're all comfortable with numbers plucked out of the ether, let's use yours: 1. The group of low-wage workers produce on average $9/hr. 2. A minimum wage of $15/hr is introduced. 3. The income of 10% of the group falls to $0/hr because they lose their jobs, a fall of $9/hr * 0.1 = $0.9/hr on average. 4. The income of 90% of the group rises to the new minimum wage of $15/hr, an increase of $(15 - 9 = 6)/hr * 0.9 = $5.4/hr on average. 5. The net change in income is $(5.4 - 0.9 = 4.5)/hr on average. So with all these contrived numbers the introduction of the minimum wage raised low-wage worker pay by $4.5/hr on average. Is that bad for low-wage workers? Of course, really, we should just take ryandamm's advice here [0] and stop trying to provide our arguments with the air of rigour by throwing some made up numbers around. [0] https://news.ycombinator.com/item?id=14381189 https://news.ycombinator.com/item?id=14381189