Only 20 percent of the workers with minimum wage come from poor families while 11 percent of the poor workers have full-time works. For that matter, the people that can be directly be benefited in the increase in minimum wage are the permanent workers specifically those with high rates (Sherk 1-3). In the absence of the barriers then, there can be an effective result in decreasing poverty when minimum wage is increased. In the scenario wherein there is an increase in the compliance law and improvement in coverage.
In the study by Mincy, benefits can be achieved in a particular year when minimum wage would be increased to a certain level. At a given increase, poverty rates can be improved (p. 23). This can be attributed to the fact that minimum wage does not directly correlate to the poverty rate. For that matter, to be able to improve effects on poverty, other factors involved should also be improved. Poverty is affected by different factors. Income is only one of the said factors. There are suggested ways to improve conditions of people in poverty in relation to the worker wages.
One is the increase in the number of hours they are working. This can be based on the fact that only a small percentage works full time. It was projected that poverty rates can improve by more than 70 percent if such action is undertaken effectively (Sherk 1-3). Based on the survey undertaken by the US Census Bureau, the people that are in poverty regardless of their race in the US are 13 percent as of August 2008 results (p.
20). On the other hand, the minimum wage can be considered to increase continuously to that fact that it is based also on price index. It can then be considered that unless there is significant change in the employment conditions, poverty can be alleviated. Based on the data on wages of full- and part-time workers as presented in Table 1, a greater number of workers are below the minimum wage (US Department of Labor 3). For that matter, it can be considered that a more concerted effort on the basis of different factors to improve poverty is needed. Table 1.
Federal Minimum Wage Data in 2007. Types of Workers Total number pain in hourly rates At or below minimum wage (total) At minimum wage Below minimum wage Full-Time 57,745 752 94 658 Part-Time 17,997 971 172 799 Source: (US Department of Labor 3) Analysis The issue regarding the effects of minimum wage on poverty then can be considered challenging on the basis of the conflicts both in definition and effectiveness.
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