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Why do Minimum-Wage Laws Primarily Hurt Teenagers and Young Adults?

David Henderson has joined the domestic policy think tank as a fellow and his discussion about the minimum wage explained clearly that even the teenagers are suffering they should finish school and after that, they would be able to get average as well as higher wages.

The minimum wage labor has provided severe harm to young adults as well as teenagers. The main issue faced by this age group was that they had equal expenses as compared to the adults who had skills as well as experience.

The young community had very little working experience and they took jobs that required fewer skills. That’s why the business holders and the economists were looking forward to the effects which would create more people to engage in their work and the least wages would be given. For that purpose, their focus was the teenager group and according to Henderson, there are fewer jobs and a loss of marketplace competition which would result in serious turns for the companies and local businesses.

The minimum wages advocates had an argument that teenagers should definitely be given fewer wages than comparatively in the market so that they should not find encouragement to drop out of schools and colleges.

How many jobs would Henderson estimate to be destroyed by a 15 percent increase in the minimum wage?

It is estimated that the minimum wage increase to even 15% would result in the loss of jobs, The main reason behind a lot number of people getting unemployed is that the employers are not willing to increase the wages, and also their minds are business oriented and they are unable to pay good ages or a little increment to the worker. The estimated number of jobs that would be lost and destroyed because of the increase in the minimum wages would be approximately most of the unskilled and least skilled ones. College and university students are doing these jobs.

The number of jobs decreased in the state would be almost 35,000 to 70,000. It will cause a huge number of teenagers and students to lose their work. All over California, a minimum wage increase would increase the poverty in the areas and it will let the loss of almost 70,000 to 140,000 jobs. All over the country, this increase of wages would destroy almost 290,000 t0 590,000 teenagers’ jobs and almost 400,000 to 800,000 jobs in all sectors and of all levels.

This act will not help teenagers and young adults and in contrast, it would cause suffering in finding jobs for protecting their financial conditions.

What ulterior motives does the author attribute to labor unions, which lobby for higher minimum wages along with other worker benefits?

There are reasons which help the labor unions for creating room for the minimum wages as well as other benefits for the workers. In the competition perspective, the worker does not face any competition in finding jobs and with the help of the labor unions who uses substantial resources to create room for increasing the minimum wages as well as helping the workers with the benefits.

It is clear and understandable that the loss of employment due to an increase in the minimum wage would be a serious problem all over the country and will ruin a lot number of people having no jobs and no training at all. The culture of doing work from the very start day of college is seemed to be mandatory for students belonging to low-earning families and because of the loss of employment they would lose the track of education as well.

Works Cited

Sherk, James. “Raising the Minimum Wage Will Not Reduce Poverty.” Backgrounder 1994 (2007).



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