| Minimum wage laws stipulate the lowest hourly wage | | | | Age discrimination against younger workers often |
| that an employer can legally pay an employee. | | | | involves the use and manipulation of minimum wage |
| Currently, about ninety percent of countries | | | | laws. Because young workers are generally less |
| worldwide employ a minimum wage rate. In the | | | | skilled, employers can often justify paying them less |
| United States, as elsewhere, the laws are | | | | than their older counterparts. However, when equal |
| controversial. | | | | ability levels are present between an older and |
| Supporters of minimum wage laws claim the rules | | | | younger worker and the younger worker continues |
| ensure workers can afford the basic necessities of | | | | to make less money, age discrimination might be |
| life and help to reduce exploitation of lower class and | | | | present. Minimum wage laws codify a tiered wage |
| younger workers. Other benefits of minimum wage | | | | system based on age rather than ability. Some |
| include stimulated consumption by the lower classes, | | | | employers also hire workers who are younger than |
| as they generally spend their entire paycheck. | | | | the legal working age and pay them less than |
| Supporters also assert that wage laws decrease the | | | | minimum wage, thereby reducing costs and |
| cost of government social welfare programs by | | | | destroying their ability to voice grievances without |
| increasing paychecks for the lowest earners in | | | | losing their jobs. |
| society. As a concept to be enforced, minimum wage | | | | Potential alternatives to minimum wage laws include a |
| is simple, as workers only need to report violations of | | | | negative income tax or an earned income tax credit. |
| underpayment. | | | | In a negative income tax, a flat tax rate would be |
| Critics of the laws state that they hurt small | | | | paid plus a fixed government payment. This would be |
| businesses more than large businesses and reduce | | | | in contrast to a progressive tax rate like the system |
| profit margins for owners. In turn, this leads to | | | | that is currently in place. The Earned Income Tax |
| increased prices for goods and services being sold, | | | | Income is a refundable credit that supplements |
| causing inflation and less consumption in the economy. | | | | income, generally of single parents or families with |
| In a survey of American Economic Association | | | | children. These two options benefit a broader |
| economists, 45.6% completely agreed with the | | | | spectrum of low wage earners and reduce the tax |
| statement that "it increases unemployment among | | | | burden by distributing the costs more broadly in |
| young and unskilled workers." This negative impact on | | | | society. |
| younger workers is said to be age discrimination by | | | | If you are interested in learning more, age |
| some. | | | | discrimination and minimum wage can help. |