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Living Wage __ Rotten ACORN __


									Living Wage :: Rotten ACORN ::                                                                                             10/3/09 5:53 PM

             What ACORN Won't Tell You
             About Government Mandated
             Wage Increases
             Forcing an increase in the minimum wage sounds like a good
             idea. Supporters claim that increasing the minimum wage
             will help working families make ends meet. But decades of
             research are clear: mandated wage hikes impose high
             economic costs. Worse, they also impose high social costs,
             hurting most those they are intended to help.

                                                                               Did ACORN really sue to get our of paying
             With an increase in entry-level labor costs, many employers
                                                                               the minimum wage?
             will shorten the shifts of many existing employees. Other
             employers will eliminate positions entirely. The least-skilled
                                                                                  Click here to read our report on Acorn
             will be particularly harmed, as they will have a harder time
             finding — or keeping — that critical entry-level job.

             Low-skilled employees will be pushed out of jobs as higher wages attract applicants with more skills and more
             experience. In 2004, Duke University researchers found that low-skilled adult employees are often displaced by
             teens from wealthy families who are attracted by the higher wage.

             The vast majority of minimum wage earners are teens living at home or are second-wage earners from financially
             stable families. Nationally, only 15% of employees that would be affected by a minimum wage increase are single
             earners with a family. The average family income of employees who would be affected by this minimum wage
             increase is just over $44,000.

             A minimum wage job is the first step to higher wages. The skills and experience acquired help employees move
             up the economic ladder. Research shows that almost two-thirds of those earning minimum wage receive a raise
             within one to twelve months of being hired.

             A minimum wage is a starting wage, not a life or career wage. Employees gain critical skills and experience that
             help them advance to higher pay. Raising the minimum wage reduces the availability of these starting jobs. It
             pushes these first jobs further out of reach of low-skill employees.                                                                                          Page 1 of 1

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