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Wednesday, August 14, 2013

The Reverberating Impact of Low Wages

Today's post was shared by RWJF PublicHealth and comes from

A recent vote by the Washington D.C. City Council requires large retailers to pay a minimum hourly wage of $12.50 an hour—$5.25 more than the current minimum wage of $7.25 nationally and $8.25 in D.C.— and the decision received wide attention, especially when retailers planning to build new stores in the city said they’d pull the plug on the projects if required to pay the higher salaries. But at least two recent magazine articles explain why there’s been a fervent recent push to try to push up the wages of those in low-paying jobs. New York Magazine recently surveyed 100 fast food restaurant employees in that city and asked, among other things, “can you live off your paycheck?” The answer appears to be no. The average pretax monthly pay for the surveyed workers was $984 while average monthly expenses including rent, utilities, groceries and cell phone bills was $1,115—which adds up to $131 more in expenses than pay.

Bonus Link: Why does income matter to health? See a NewPublicHealth infographic on how stable jobs and income lead to healthier lives.

And last weeks’ New Yorker Magazine added heft to the need to look at the current minimum wage rate, in light of just how critical that income is to many households. According to the article, while low-wage retail jobs were once squarely aimed at high school students looking for pocket money and those looking for supplemental income, in the last few years of stiff unemployment,...

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