The research suggests that previous increases in the minimum wage played an important role in reducing wage disparities between races. Although a higher minimum wage can lead to some job losses, studies, such as one from the Congressional Budget Office, predict that the losses would be modest, especially compared to poverty reduction. The study estimates that raising the federal minimum wage to $ 15 an hour would result in the loss of 1.4 million jobs, but would increase the wages of 27 million workers (including some who earn just above the minimum wage) and take 900,000. people from poverty.
But low pay is just a problem for these workers. Low-paid jobs are less likely to offer benefits to employers, such as health insurance, retirement plans and paid leave. They come with greater health and safety risks than higher-paying jobs. In addition, people of color and women are disproportionately likely to have low-paying jobs due to longstanding inequalities that deny them the chance to participate and reap the benefits of the American economy.
Addressing these inequalities will take many forms. Federal, state and local governments need to consider new legislation and regulations that can address mandatory employer benefits and workplace standards, as well as providing access to benefits outside of employment. In addition, employers’ voluntary efforts to increase the quality of work can be aided by customers, government contract providers and others, creating incentives for employers.
The pandemic highlighted and exacerbated the many challenges that workers face in lower-wage jobs. Many low-wage essential workers – including grocery store clerks, delivery men and meat packers – face exposure to Covid-19. In some cases, access to personal protective equipment or protection against risks was inconsistent or non-existent. And some low-income workers who fell ill or were exposed to Covid-19 did not have paid leave to take care of themselves or health insurance to pay for exams.
In addition to facing increased exposure to the coronavirus, many low-wage workers in sectors hard hit by pandemic blockages, such as hospitality, have lost their jobs. But many of these workers continue to struggle for an increase in the minimum wage and improvements in job quality. Restaurant workers are advocating eliminating the minimum wage with tips (employers can pay $ 2.13 for workers who receive tips) and raising the federal minimum wage to $ 15.
Increased attention to these issues during the pandemic has led to some positive, albeit temporary, changes. Some employers have provided some relief in the form of hazard pay, overtime and paid leave, for example. The federal government’s emergency response also extended paid leave to some workers affected by Covid-19. This can pave the way for more permanent changes.
Problems with low-wage jobs existed even in the pre-pandemic booming economy and they will persist in the post-vaccination economy. A minimum standard of quality of work is essential to improve the labor market for all workers, and this standard includes a higher minimum wage.
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