There are two terms worth noting, both “covered employment” and “uncovered employment”. Covered employment is where an individual works for a company that provides him or her a “covered wage”, which are used to establish insurance benefits. Uncovered employment is used in instances where an employer pays an employee, but under Minnesota Unemployment Insurance Law, they are not required to pay unemployment insurance tax. According to a study performed by Nicole M. Coomer and Walter J. Wessels of Journal of Labor Research, minimum wage has affected both covered and uncovered employment greatly, “To illustrate, we found that the minimum wage decreased covered employment but increased uncovered employment. Similarly, we found it reduced the employment of lower-skilled teenagers more” (272). Reducing covered employment means that people are choosing “under-the-table” jobs, or jobs where employees receive money from an individual employer rather than a company providing the salary. Without a covered job, certain workers are missing out on benefits offered by most companies such as healthcare, vacation time and dental insurance. It is definitely a problem for those with families, but it is more of a personal preference than an emergency. If a person chooses a job without any benefits, then that is his or her choice and they are ...
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...s as well.
The biggest complaint among raised minimum wage opponents seems to be their belief that employment would be affected drastically, resulting in less hours and job loss. Bruce E. Kaufman of ILR review intended to refute these claims which he deems to be entirely based on lack of research and understanding based on the “Fair Labors Standard Act” of 1938. Bruce E. Kaufman iterates, “Illustratively, Stigler asserted that the primary goal of the FLSA is poverty reduction, but it is revealing that he gave no citation or other evidence to support this claim” (430). To claim that minimum wage is a wrong course of action to take are based mostly on old-age viewpoints by people who are not even alive anymore. Though Kaufman goes on to state that some of these negative beliefs could undoubtedly be true, these claims are also almost always based on doubt and debate.
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