Who Earns the Minimum Wage–Single Parents or Suburban Teenagers?
As Congress debates raising the minimum wage, Congress should consider which workers—assuming that their jobs are not casualties of the higher minimum wage—the change would benefit. Data from the Department of Labor show that most minimum wage-earners are young, part-time workers and that relatively few live below the poverty line. A minimum wage hike, then, is more a raise for suburban teenagers than for the working poor. If Congress is serious about helping the working poor, it should look elsewhere than raising the minimum wage. Relatively few Americans earn the federal minimum wage.[1] In 2005, 1.9 million Americans reported earning $5.15 or less per hour.[2] This amounted to 2.5 percent of all workers earning hourly wages and 1.5 percent of all workers in the United States. But these numbers include workers who also earn tip income. Many of those earning less than the minimum wage work in restaurants and so make more than the minimum after taking their tips into account. Using ano