Minimum Wage Policy for Non-Trade Labor Service Contracts

LafayetteBis · Jun 9, 2018

From here: EPI comments on Minimum Wage Policy for Non-Trade Labor Service Contracts

Excerpt:

The Port Authority’s minimum wage policy is a well-designed and important policy for maintaining the safe and effective operation of the New York metropolitan region’s airports. By establishing a gradually rising wage floor for contracted airport workers that will reach $19.00 an hour in 2023, the Port Authority is setting a standard that will help the airports’ contracted service providers to attract and retain a skilled workforce, cut down on costly and potentially dangerous turnover, and help ensure the smooth operation of critical pieces of regional and national infrastructure. Strong wage standards, such as those adopted by the Port Authority, will be increasingly important as the health of the labor market continues to improve and employers face fiercer competition to recruit and retain staff.

A large body of research has shown that raising wages generally, and setting high minimum wage standards specifically, leads to meaningful reductions in employee turnover or “churn” among affected workers. Extensive additional research documents the links between higher wages and improved productivity.

One reason higher minimum wages reduce turnover is that, after a raise, workers stay at their current job longer, as they are less likely to search and find even higher paying jobs. A second reason is that, after a minimum wage increase, it becomes more cost-effective for employers to invest in their current employees rather than lay them off and hire new, untrained workers.

The most comprehensive analysis of the turnover-reducing effects of higher minimum wages—by professors Arindrajit Dube, T. William Lester, and Michael Reich, published in the Journal of Labor Economics in 2016—finds strong evidence for both of these channels (Dube, Lester, and Reich 2016). Using nearly 200 minimum wage changes resulting from state-level and federal minimum wage increases, the study finds that raising the minimum wage significantly reduces worker turnover. Employees with the sharpest reductions in turnover are those who would otherwise stay employed at their workplace for only a short amount of time. As a result of reduced worker turnover, wage increases cause the workforce to become more experienced at their jobs, the study also finds.

These findings have been confirmed by other studies on the minimum wage in the U.S. and elsewhere.
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The time has come to take the misery out of presently far too low Minimum Wage rates ($7.25/hour) throughout the US. The above is just one bold step in that direction.

Your BigMac is gonna cost 0.30/0.50 cents more by doing so ...

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Minimum Wage Policy for Non-Trade Labor Service Contracts

LafayetteBis Well-Known Member Past Donor

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Minimum Wage Policy for Non-Trade Labor Service Contracts

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