Musings on the pros and cons of the minimum wage conundrum

A layered minimum wage might be a better answer.

This concept of just raising the minimum wage, while it sounds egalitarian and well thought out on the surface, if followed through without any modifiers, will probably hurt more workers than help.

For example, minimum wage also includes those applying for entry level, first time, possibly unskilled jobs.

Once a person has had a chance to prove themselves, train or educate themselves, in theory they would move themselves on to higher paying jobs that require more training, maturity and responsibility.

wageIf the minimum wage is raised higher than is warranted to pay an entry level worker, as described above, it may be nearly possible for that person to obtain paid employment. And since unpaid apprenticeships are rare, I’m not sure how a person could get effectively started in the work place.

For example, would you as an employer be willing to pay a 16-year-old first time worker the same thing as maybe someone with several years of experience, but not as experienced as your next level of worker? Where is there room for growth and the incentive to train employees that apply with no skills or education? Training a new worker is a very expensive undertaking for an employer.

If they don’t work out for almost any reason, they are almost assured Unemploment for almost two years, in the state of Maryland. This makes it a very risky proposition for a potential employer, as they have to pay the state for that worker’s unemployment, if it doesn’t work out.

As an employer, we have started to moved away from the uncertainty of entry level workers and now require the requisite prior training and education in order to be hired. It does pay better. We have less stress. But I believe that the entry level worker is slowly being shut out of the workplace.