18 ms·
If workers can't afford housing, you'll have plenty of empty and available positions, even at $15 / hour. Especially if you want / need reliable (ABLE to reliab
by jrs235 5y ago
If workers can't afford housing, you'll have plenty of empty and available positions, even at $15 / hour. Especially if you want / need reliable (ABLE to reliably show up for shifts) workers.
Let me break it down...
Let's start with $15 an hour.
Let's be generous and assume five 8 hour shifts per week (2080 hours per year: 5 shifts per week * 8 hours per shift * 52 weeks per year).
That's $600 per week ($15 per hour * 5 shifts per week * 8 hours per shift). Or $31200 ($600 per week * 52 weeks) per year.
Let's assume affordable housing is 30 miles away and takes an average of 1 hour to commute one way.
That's 10 hours of commuting per week (5 shifts, 1 hour EACH way or 1 * 5 * 2) or 520 hours commuting per year (10 hours per week * 52 weeks per yr).
The time commitment of the worker is 10 hours per shift (8 paid working, 2 unpaid commuting).
The yearly time commitment is 2600 hours per year (2080 working, 520 commuting).
So the effective hourly rate is $31200/yr / 2600 hours/yr which is $12 per hour.
BUT! Commuting isn't free. Let's assume the worker owns a car in order to get to and from work. Let's round off the cost per mile (gas, wear and tear) to be 50 cents a mile.
So the cost of commuting per shift is $30 (30 miles one way * 2 ways * $.50 / mile) or $7800 per year ($30 per shift times 5 shifts per week * 52 weeks per year)!
SO! To have the $15 per hour job costs the worker $7800 per year and 2600 hours per year!
So, ($31200 per year - $7800 per year) / 2600 hours = $23400 / 2600 hours = $9 per hour!
$9 per hour! That $15 per hour job is competing with $9 per hour jobs that are closer and more local to affordable housing and giving thousands of hours per year back to the worker.
Think about that...
- effingwewt 5y agoYou can also add federal taxes, some states take an income tax as well. And this assumes no children, so no costs for child care. Throw that in the mix and it can actually cost some people money just to work. We need to fix the incentives when businesses would rather scream and close their doors than make less and pay a living wage for their location.
- jrs235 5y ago*giving :hundreds: of hours per year back to the worker.