Starting in 1938, minimum wage was introduced in the United States of America. Minimum wage was authorized based on an ideal in which families would be put into a better place financially. Raising an individual’s income will allow them to spend their excess cash on items that may have been once considered a luxury on their lower salary. On the opposite side of this reasoning, raising the minimum wage may not help lower income families. Job positions within a company, especially those that require a lower set of skills, may be eliminated and replaced by a lower cost alternative option. If a company is forced to pay a certain wage for an unskilled worker, the employer has to increase their requirements for such position, making workers with
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With poverty rate as our dependent variable and high school completion rate, unemployment rate, and minimum wage as our independent variables, we ran a linear regression analysis to test the question asking will those states with a higher minimum wage improve the standard of living within the corresponding state. As we saw in the regression, the data used was rejected thus rejecting the original hypothesis; raising the minimum wage will not raise the standard of living within a community. This paper can be improved upon with different data that focuses on communities with a high number of residents relying on the minimum wage. With data focused these areas; I would predict that the standard of living does not increase among these communities. Of course running the regression with more dependent variables along with dummy variables would make for better results and lead to a better conclusion. With the minimum wage expected to rise in the near future, it will be interesting to see what affect takes place on the standard of living. Will citizens be better off because of the increase? Or will my hypothesis stand and keep the standard of living as is or perhaps even lower it? It will be interesting to see the results of future research papers on this same
With poverty rate as our dependent variable and high school completion rate, unemployment rate, and minimum wage as our independent variables, we ran a linear regression analysis to test the question asking will those states with a higher minimum wage improve the standard of living within the corresponding state. As we saw in the regression, the data used was rejected thus rejecting the original hypothesis; raising the minimum wage will not raise the standard of living within a community. This paper can be improved upon with different data that focuses on communities with a high number of residents relying on the minimum wage. With data focused these areas; I would predict that the standard of living does not increase among these communities. Of course running the regression with more dependent variables along with dummy variables would make for better results and lead to a better conclusion. With the minimum wage expected to rise in the near future, it will be interesting to see what affect takes place on the standard of living. Will citizens be better off because of the increase? Or will my hypothesis stand and keep the standard of living as is or perhaps even lower it? It will be interesting to see the results of future research papers on this same