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Minimum Wage

The minimum wage should be raised so people could make more money for living, and still be able to save for school, car, for an apartment. By increasing the minimum wage, it will raise the wages of millions of workers. People will not have to work so many hours overtime or get second job to support their family. A minimum wage job should offer more than just an opportunity to work—it should guarantee an opportunity to make a living from work. Anyone who puts in a fair day’s work should receive a fair day’s pay, regardless of whether he or she works for a week, a month, a year or 10 years in the job.

The lowest minimum wage in United States is now $5.15 an hour. Although workers under age 20 can be paid $4.25 an hour for their first 90 days. The minimum wage is 24 percent lower today than it was in 1979. If the wage had just kept going with inflation since 1968 when it was a $1.60 an hour, today it will be worth $8.46 an hour. The only states that have legislated minimum wages higher than the Federal minimum wage are Alaska, Oregon, Connecticut, Massachusetts, Hawaii, Vermont, and District of Columbia. The highest minimum wage in United States is $7.16 an hour; it is in Washington State. If the minimum wage is not increased, its real value will fall to $4.82 by the year 2004—lower than all but one year (1989) since 1955.

Increases in the minimum wage have been shown to generate wage gains. However is benefits mostly workers with family income well below the average. When we take in the consideration data from the last increase in minimum wage shows that 35% of the increase in the wages went to working families in the bottom 20% of the income distribution. When we combine the first two income fifths, with the average income $24,137, we reveal that 58% of the benefits went to low-income working families, as compared to 16.4% of national income. Also some of the benefits from the increase flow to families with above average income. Data shows that 26.7 % of the gains go to families in the top 40%.

Studies have shown that there is no systematic job loss when minimum wage is increased. The effect on unemployment is generally economically small and statically insignificant. Research shows that since 1998 the labor market conditions facing-low wage labor market have continue to improve. Month after month in the current labor market, low-wage, and minority workers post historic gains. In 19999 after the wage increase research show that unemployment rates of African-Americans, Hispanics, and 16-34 year old all hit 30-year lows. In addition, the employment rate of young African-Americans women with high-school degree increased by 6.6 percent, 1995-98, and their unemployment rate fell by 4.2 percent. Work should be a bridge out of poverty, but for many it is not. About 3.5 million workers worked full-time and year-round in 1999, yet they and their families lived in poverty. A 2001 U.S. Conference of Mayors study found that 37 percent of adults seeking emergency food aid were employed. Officials in 63 percent of the cities surveyed identified low-paying jobs as a primary cause of hunger.

Minimum wage increase is a useful poverty reduction tool. Also raising the minimum wage helps make work pay for poor and near poor person entering the labor market. In a 1989 paper wrote by Burkhousher and Finnegan we could find that an increase in the minimum wage would reduce the poverty rate of low-wage workers by 21%. We could find also that evidence supporting this statement in paper wrote by Card and Ineger. They find out some evidence that between 1989 and 1991, states with minimum wage increase had a greater impact had slightly larger declines in their poverty rates. When it comes to minimum serving as an anti-poverty tool we can find evidence to support this statement in work of Addison and Blackburn (1999) They find that increase in minimum wages in 1990s have serves to reduce poverty. In their analysis, minimum wage increases go from having no statistically identified effect on poverty in 1990s to having antipoverty effects in the 1990s. Theses effects are driven by increase in both earnings and weeks worked.
why nobody wants to help me!Emotion: sad
Hi Pawcio,

This is very well written and you just need to go through it to catch a few typos and little mistakes.

For example:
However is benefits mostly workers with family income...

However it benefits...
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