There is a lot of controversy around the current federal minimum wage increases. Different points of view can be found depending on the perspective through which changes to the rate are examined. When seen through the lens of economics, the results are inconsistent. Some studies find that rising costs lead to reductions in jobs, while other studies indicate that there are no job losses. When viewed through the lens of a living wage, the impact on individuals and families, as well as the opportunity to pull families out of poverty, becomes more apparent.
The introduction of a minimum wage not only flattens out the pay distribution but also affects the market value of skills. This, in turn, modifies the incentives individuals confront when determining their level of educational pursuit. There are diverse, interesting minimum wage essay examples that expose more on this topic. These essay samples explore the economy’s stage and government decisions about the minimum wage. The minimum wage increase affects not only adults but a youth. Let’s find out more!
How Minimum Wage Increase Affects Students
Minimum wages play a role in determining whether or not high school graduates pursue post-secondary education. It determines whether or not they return to school as adults. Older students drive a beneficial effect on enrolment at community colleges. Students already enrolled in community college have a lower risk of dropping out. Also, the workers who have left their jobs have a higher risk of enrolling in community college to continue their education after leaving their jobs. This is because the minimum wage impact may increase competition in the labor market.
These groundbreaking findings can educate policymakers about the knock-on impacts of minimum wage restrictions on human capital accumulation. It may also educate them on the consequences of regulations on educational attainment. The government spends a significant amount on post-secondary education. Hence, it is essential to clearly understand whether a policy on minimum wage works against or is in favor of concurrent education initiatives.
Higher minimum salaries encourage the accumulation of human capital unique to occupations at community colleges. However, they discourage enrolment in academic programs offered by universities. If the minimum wage were raised by 10%, the number of people enrolling in community colleges would rise by 6%, while the number of people enrolling in universities would fall by 5%.
At the same time, a high minimum wage increase improves the link between parental background and children’s educational attainment. In that case, worsening the gap between those with high and low parental education would worsen the proportion of the population that attends college. There is evidence that the rise in the opportunity cost of education brought on by increases in the minimum wage discourages enrollment among kids whose parents have lower levels of education.
Increasing the minimum wage would enable students to work fewer hours. Hence, allowing them to devote their time to activities that positively impact their lives and make their schedules less hectic. The total cost of attendance at San Diego State University (SDSU) is estimated to be $30,522 for in-state students. This cost considers tuition, food, housing, transportation, and additional personal expenses. For a student to afford this expense while working 15 hours per week, the student’s hourly wage would need to be greater than $39 per hour.
This is an incredible and unattainable target number. However, raising the minimum wage would greatly assist working students. According to recent studies, most United States citizens favor increasing the minimum wage to $15 per hour. California is gradually implementing a minimum wage of $15 by increasing hourly pay by one dollar each year. Likewise, other states are moving more quickly toward this goal. Although there is room for improvement, this constitutes progress in the right direction.
It is anticipated that raising the minimum wage will help pull people out of poverty and promote work ethic. Nevertheless, it also comes with a wide range of potential adverse effects, such as an increase in inflation and a reduction in employment opportunities.
Conclusion
Students who work 15 hours per week at the minimum wage will soon see their earnings increase by more than $2,000. With this money, an individual may pay almost all of their annual expenses.
Additionally, a portion of it might be placed in a savings account for the student to have some money once they have completed their education. College is already a challenging endeavor on its own. The amount of money one has should not be a barrier to success. Let’s increase the minimum wage so that students can achieve their full potential.
John Marlow
John is a research writer and a data analyst. He writes college essays on diverse areas. John uses a writing tone that always connects to his audience.
