Increase In Minimum Wage, Research Paper Example

Increasing the U.S. federal minimum wage has been subject to prevalent public discourse for a long while. Notably, advocates of increased minimum wages point toward the progressive declines in federal minimum wages’ inflation-adjusted value and the equivalent reduction in inflation-adjusted wage for low skilled employees. Support for the increment in the minimum wage is notable in present-day American society. For example, by 2015, nearly 73% of the American population supported the minimum wage increment from nearly $7 to $10 hourly (Flavin & Shufeldt 168). This support was also evident among 90% of Democrats, 71% of Independents, and 53% of Republicans. Additionally, in 2016, a Gallup survey also identified that nearly 56% of the American population supported the idea of elevating the national least wage to about $15 hourly by 2020 (Flavin & Shufeldt 168). Such statistics highlight the prevalent yearn for an improved minimum salary. Again, the backing for an enhanced national least wage is rooted in the notion that such a move would enhance health and prosperity for most Americans while reducing reliance on Federal Aid.

A prevalent contention in favor of improving the national minimum compensation is that low wage employees will be able to earn higher income; thus, improving their families’ standard of living. More money for the lower-wage workers implies increased individual income, which is critical in meeting their fundamental needs. Flavin and Shufeldt provide an apt perspective on the relevance of improved least wages for the lower-income employees by contrasting the least wage in Washington and Georgia states. According to the authors, Washington has the most significant state least wages at $11 while the latter has the least state-based least wages at about $5 (Flavin & Shufeldt 173). The variation in the low-wage employees’ pre-taxation incomes in these two states is nearly $12000 annually (Flavin & Shufeldt 173). Even when one accounts for the cost-of-living differences in the two areas, the minimum wages results in notable implications, particularly on low-income employees’ capability to meet their fundamental needs such as food, clothes, and housing. Meeting these needs is significant in averting adverse impacts of poverty, such as deteriorating physical and psychological well-being (Leigh & Du). Additionally, the negative impacts of minimal individual income is experienced by children, which is still a likely problem for future generations to deal with. Therefore, increasing the least earnable wages is vital in enhancing employees’ wholesome welfare, guaranteeing their households and kids’ prosperity.

Boosting the national least wages is also essential in countering the adverse effects of low-income wage on health. This aspect is particularly notable in research exploring the impact of wages on children’s health. Wehby et al. approximate that increased minimum wages result in considerable enhancement in childhood health (24). For kids between 6 and 12 years, Wehby et al.’s study identifies that a $1 rise in the minimum wages in the course of one’s child’s life, such as a $1 rise annually, is linked to an approximate 10% rise in the likelihood that the kid will be in optimal health. Again, there would be a 29% drop in poor health and a 26% reduction in school-related absenteeism because of injuries or ailment (24). Wehby et al. evaluation concern three indicators of whether a kid’s well-being necessitates more significant medication and healthcare utilisation than peers. The other factor is whether this and minimizes the kid’s capability to participate in routine day-to-day activities (24). For kids between 13 and 17 years, the one-dollar increase in every year of a kid’s life was related to an 11% rise in the likelihood they had superior well-being, 57% reduction in the likelihood of experiencing deteriorating health, and 42% in reduced school absenteeism resulting from ailments and injuries (Wehby et al. 24). Such findings underscore the relevance of augmenting the national least earnable wages.

The low pays and poor health connection is also notable in adults. For instance, Du and Leigh explore the effect of wages on the decision to smoke on present and past smokers. The authors rely on longitudinal data to determine the causal impact of salary on smoking incidence. Interestingly, the writers identify proof that low wages motivate the tendency to smoke, particularly for men, individuals who have attained high school academic qualification, and quitters. However, the researchers further determine that a 10% upsurge in the least earnable wages can result in a 5.5% and 4.6% decrease in smoking propensity in men and individuals with low academic qualifications, respectively (Du & Leigh 580). The increased wage also increases the mean probability of smoking cessation on base-year smokers from 17% to 20.4% (Du & Leigh 580). Such a finding is essential in supporting the logic and significance of compounding the federal least earnable wages. In this case, a surge in wages will improve public health, such as reducing smoking prevalence in adults.

One cannot ignore the mental health benefits of increased individual income subject to raising the national least wages. A worrying reality is that most low-income parents are unable to support their families because of limited individual income. A study Campbell-Grossman et al. identify that low income can be a significant psychological stressor when one cannot meet their basic needs or those of the children (2309). Cases of chronic stress can result in adverse health issues such as cardiovascular issue or poor managing mechanisms like eating or substance abuse. Such coping strategies result in further negative health issues that are draining one’s financial resource further. However, a rise in the least earnable wages would substantially enhance psychological and physical health.

Additionally, a pay rise would promote increased overall subjective well-being because of increased social connectedness. According to Flavin and Shufeldt, an aspect of improving the overall workplace experiences entails the ability to establish friendly acquaintances and close ties with employees and the larger society (174). Social integration is critical for an individual’s psychological well-being. Flavin and Shufeldt identify that employees having stable social connectedness, primarily because of higher wages, are subject to a high likelihood of becoming more committed to their workplace and nurturing personal associations. Such realities are critical in mitigating work dissatisfaction, linked to the prevalence of work burnout, subsequent stress, high absenteeism rates, and high employee turnover (174). Flavin and Shufeldt further identify that social integration accompanies low-wage workers beyond their workplaces and could offer citizens more agency (174). Raising of lower-wage helps them shift from private sectors, which according to the writers, are significantly demanding (174). In consequence, more significant least earned wages will guarantee higher chances for lower-wage citizens to participate more considerably within civic and social life and, accordingly, improve one’s subjective well-being.

Lastly, improving the national least achievable wages will counter the vast dependence on federal assistance. According to Cooper, a $12 advance in the least earnable wages will cut federal aid by nearly $17 billion. Therefore, it is undeniable that improving the wages will help the U.S. government minimize expenditure on federal aid, which, in turn, will make vast financial resources available for improving alternative anti-poverty initiatives. Notable nearly 67% of households receiving federal aid are characterized by working adults who are not paid adequately (Cooper). The statistic is more worrying when one disregards the aged population because nearly 72% of individuals receiving federal aid are below 65 years and are working (Cooper). The author further identifies that nearly 69% of all people receiving federal assistance incentives are within non-elderly households with at least one working adult. Interestingly, Cooper estimates that if the bottom 30% of low-income employees receive a $1.17 pay increase hourly, more than one million employed will not depend on federal aid. Additionally, each $1 wage increase within the lower-wage employees influences a positive ripple effect where governmental expenditure on public assistance reduces by nearly $5.2 billion. Such findings underscore the significance of raising the national least earned wages.

In conclusion, an increment in the least earned salary is vital in enhancing lower-wage employees’ livelihood, enhancing public health, and countering the vast reliance on federal aid. Notably, low-income is linked to poor physical health for both adults and children. Psychological well-being is also affected because of the absence of socialization in routine community activities resulting from low income. Increase individual income will help low-income citizens meet their families’ needs, averting adverse impacts of poverty such as deteriorating physical and psychological well-being. Additionally, increasing the wage cuts on public assistance federal expenditure makes significant financial resources available for improving alternative anti-poverty initiatives.

Works Cited

Campbell-Grossman, Christie, et al. “Low-income, African American, adolescent mothers’ depressive symptoms, perceived stress, and social support.” Journal of child and family studies 25.7 (2016): 2306-2314.

Cooper, David. “Balancing paychecks and public assistance: How higher wages would strengthen what government can do.” Economic Policy Institute. Available online: https://www. epi. org/publication/wages and-transfers (2016).

Du, Juan, and J. Paul Leigh. “Effects of wages on smoking decisions of current and past smokers.” Annals of Epidemiology 25.8 (2015): 575-582.

Flavin, Patrick, and Gregory Shufeldt. “The State of the Minimum Wage: Federalism, Economic Policy, and Workers’ Well-Being.” The Forum. Vol. 15. No. 1. De Gruyter, 2017.

Leigh, P., & Du, J. (2018). Effects of minimum wages on population health. Health Affairs.

Wehby, George, et al. Effects of the Minimum Wage on Child Health. No. w26691. National Bureau of Economic Research, 2020.