Monday, February 17, 2014

Crossing Borders and Changing Lives, Lured by Higher State Minimum Wages

The minimum wage has sparked much attention recently. They're many Americans who would like to see the minimum wage raised, as prices steadily increase. In the article, Crossing Borders and Changing Lives, Kirk Johnson discusses several instances in which people travel across state borders just to make a decent wage. The minimum wage in Oregon is $9.10, which is $1.85 more than the national average and the second highest in the nation. This has resulted in workers from nearby states commuting to Oregon for work. Kirk Johnson explains how employers in Oregon and Washington (highest minimum wage) expect their employees to go above and beyond to earn their high wage. Carly Lynch worked 3 tables at a bar in Idaho, but when she began working in Oregon she was forced to work five while also helping with dishes. It is common for workers in this area to work long continuous hours of manual labor. Though the work load is tough, many are content due to the amount of money they're recieving.

Though most of the people in this article were happy with the high minimum wage, one owner talked about the negative effects it has on everyone. Oregon is 1/10 states that adjust its minimum wage with CPI.   Therefore when the wage rises, owners raise their prices, in which the outcome can be loss of certain customers.  It will be interesting to see if the minimum wage is raised, and also how/if any states will adopt adjusting their minimum wage to CPI.

1 comment:

  1. Something else to be considered is that there could be a shortage of jobs in the states with higher minimum wages. Sure, employees will have to work harder due to higher costs and less employees, but the jobs will still be taken because of the high incentives. It will be interesting to see how many people leave their jobs in other states to move to Oregon and other areas that are continuing to raise minimum wage.

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