Final Argumentative Essay
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Record: 1 Minimum Wage around the World.
Sheposh, Richard
Salem Press Encyclopedia, January, 2016.
MINIMUM wage MINIMUM wage Government policy MINIMUM wage Law & legislation ECONOMIC history 1918
Minimum wage is the lowest rate of pay at which a worker may be legally employed. Minimum wages are set by either the government or union negotiations and can be calculated hourly, weekly, or monthly. The first national minimumwage laws were instituted in the late nineteenth century and spread to most of the world's developed countries. The laws have proven controversial, with supporters claiming that they protect workers from exploitation and economists arguing that they have a negative effect on hiring. Australia has the most generous minimumwage policy in the world, while some developed nations have no rules governing minimum pay.
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Minimum Wage around the World
Last reviewed: March 2016
Minimum wage is the lowest rate of pay at which a worker may be legally employed. Minimum wages are set by either the government or union negotiations and can be calculated hourly, weekly, or monthly. The first national minimumwage laws were instituted in the late nineteenth century and spread to most of the world's developed countries. The laws have proven controversial, with supporters claiming that they protect workers from exploitation and economists arguing that they have a negative effect on hiring. Australia has the most generous minimumwage policy in the world, while some developed nations have no rules governing minimum pay.
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Hourly minimum wages in developed OECD countries, 2013. Wages given in US$ exchange rates. By Guest2625 (Own work) [CC BYSA 4.0 (http://creativecommons.org/licenses/bysa/4.0)], via Wikimedia Commons
Minimum wage levels in OECD countries as a share of average fulltime wage, 2013. By Guest2625 (Own work) [CC BYSA 3.0 (http://creativecommons.org/licenses/bysa/3.0)], via Wikimedia Commons
History and Economic Debate
Several municipalities in sixteenthcentury England were the first to implement some government regulation of wages. The first national policy was instituted in New Zealand in 1894. The law established an arbitration board to set the country's minimum pay and applied to all businesses and industries. Australia began passing its own minimumwage laws around the turn of the twentieth century. These at first affected only certain businesses, but
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they were expanded in 1907 to ensure a "basic wage" for all workers. The United Kingdom (UK) set up its own wagearbitration boards in 1909.
In the United States, Massachusetts was the first state to pass a minimumwage law in 1912, but that legislation applied only to women and children. After the Great Depression, the U.S. enacted the Fair Labor Standards Act of 1938. The law established overtime pay, put age limits on child workers, and set the nation's first minimum wage at twentyfive cents per hour. Congressional action is needed to raise the federal minimum wage. Since 1938, the wage has been increased twentytwo times.
The birth of the minimum wage grew from the labor movements of the nineteenth and early twentieth centuries. Workers around the world often were forced to work long hours for low wages to provide for their families. Instituting a "living wage" was seen as fixing an injustice and providing workers with enough money to raise them out of poverty. Modern supporters of a higher minimum wage say that recent increases have not kept pace with rising prices, and the current wage level is inadequate to support a family. In the United States, a movement to raise the minimum wage to $15 per hour is growing.
Opponents of the hikes claim that raising the wage would cut into companies' profits and force them to raise prices, reduce staffing, and hire fewer workers. Some economists contend that higher mandatory minimum pay would encourage employers to hire more experienced workers, leaving many unskilled or entrylevel workers unable to find jobs.
Wages in Selected Nations
Most developed countries have minimumwage regulations. Many of the nations that have no such laws are in povertystricken parts of the world with politically unstable governments, such as subSaharan Africa or the Middle East. Several developed nations, such as Denmark, Sweden, Switzerland, and Finland, do not have governmentmandated minimum wages. Many of these nations have strong labor unions that have negotiated a wage structure with employers. The following list provides an overview of minimum wages from selected nations around the globe.
United States: The federal minimum wage as of 2016 was $7.25 per hour. This figure was last increased in 2009 when it was raised from $6.55 per hour. In 2013, about 4 percent of the workforce—mostly workers in the foodservice industry who were under age twentyfive—was paid at minimum wage. Each state and municipality can set its own wage rules. In 2016, Massachusetts and California set their minimum wages at $10 per hour; the District of Colombia plans to raise its rate to $11.50 per hour by July 2016. Several states have passed legislation to raise their wages in 2017 and 2018. Alabama, Louisiana, Mississippi, South Carolina, and Tennessee have no minimumwage laws.
United Kingdom: The UK set up wagearbitration boards in 1909 but did not have a governmentmandated minimum wage until 1999. That rate applied only to workers over the age of twentytwo and was set at £3.60 per hour (US$5.13). By 2016, the rate had increased to £6.70 per hour (US$9.55) and applied to workers older than twentyone. Younger workers were paid at a lesser rate based on their age range.
Canada: Canada's minimumwage laws vary by province and territory. Some provinces also have different rates for different professions. As of 2016, the Northwest Territories had the highest rate at $12.50 Canadian (US$8.91) and New Brunswick had the lowest at $10.30 Canadian (US$8.05). Certain provinces adjust their wages by professions; for example, liquor servers in some provinces are paid less than domestic employees.
Australia: Australia has the highest minimum wage in the developed world at AU$17.29 per hour (US$12.24) or AU$656.90 per week (US$464.86). The nation also has different rates based on age group and some occupations.
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China: China passed its first wage laws in 2004 and has a monthly minimum salary for fulltime workers and an hourly figure for parttime workers. Rates vary widely by region and occupation with the highest rates in the upscale Shenzen Province near Hong Kong and the lowest in the remote Guangxi Province.
France: France instituted a minimum wage in 1950 and increases it every January based on the rate of inflation. In 2016, the nation's hourly rate was 9.67 euros (US$10.51).
Germany: Germany passed its first minimumwage laws in 2015. The standard hourly rate is 8.50 euros (US$9.24), but occupations such as construction worker or teacher are paid significantly higher based on skill level and place of employment.
Mexico: Mexico has the lowest minimum wage among the world's developed nations. In 2016, the nation's rate for general workers was 73.04 pesos per day (US$3.98).
Russia: Russia has a monthly minimum wage of 6,204 rubles (US$79.96).
Bibliography
Davidson, Paul. "FastFood Workers Strike, Seeking $15 Wage, Political Muscle." USA Today. Gannett Satellite Information Network, Inc., 10 Nov. 2015. Web. 27 Jan. 2016. http://www.usatoday.com/story/money/2015/11/10/fastfoodstrikesbegin/75482782/
"History of Minimum Wage." BeBusinessed.com. BeBusinessed.com. Web. 26 Jan. 2016. http://bebusinessed.com/history/historyofminimumwage/
"Minimum Wages around the World in English and National Languages." WageIndicator.org. WageIndicator Foundation. Web. 26 Jan. 2016. http://www.wageindicator.org/main/salary/minimumwage
Petroff, Alanna. "This Country Has the Best Minimum Wage in the World." CNN Money. Cable News Network, 14 May 2015. Web. 24 Jan. 2016. http://money.cnn.com/2015/05/14/pf/minimumwagecountriesaustralia/
"State Minimum Wages." National Conference of State Legislatures. National Conference of State Legislatures. Web. 26 Jan. 2016. http://www.ncsl.org/research/laborandemployment/stateminimumwagechart.aspx
"Survey of US Economists on a $15 Federal Minimum Wage." MinimumWage.com. EPIOnline, 18 Nov. 2015. Web. 26 Jan. 2016. https://www.minimumwage.com/2015/11/surveyofuseconomistsona15federalminimum wage/
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