Posted by
Andrews on Saturday, April 19, 2008 8:57:38 PM
I was replying to a comment when it struck me, the minimum wage actually works to make entry level jobs worse. Oh, not in the usual way you hear, that by raising the wage above what the market will bear there are fewer entry level jobs. That is true, but that is only half of the picture. There is another down side.
While the law does not like jobs that pay less than the minimum wage, it has no problem with unpaid internships. Which creates a bad situation for those hoping to break into an industry. Where previously they may have been able to negotiate a $2/hour salary, they are now stuck with one of two options. If they are worth whatever the minimum wage is, they will be able to receive that. However, as they are trying to break into the industry, odds are good that is not the case, so they are left with the option of an unpaid position.
In other words, for those trying to break into a profession, the minimum wage laws have turned low paid jobs into unpaid internships (at least where it hasn't eliminated entry level positions entirely). I do not see how that benefits those looking for work.