MEET THE LOW-WAGE�UNDERPAID WORKFORCE

Kaitlyn Henderson, Oxfam

Kaitlyn Henderson, Oxfam

About Oxfam

What makes a �“good job”?

Best States to Work Index, 2022

Methodology

Best and Worst States to Work

How did North Carolina do?

The Best States to Work Index, 2022

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https://www.oxfamamerica.org/explore/research-publications/best-and-worst-states-work-america-2022/

https://www.oxfamamerica.org/explore/countries/united-states/poverty-in-the-us/best-states-for-working-women-2022/

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Wage Policies Ranking: #51

Ratio of Minimum Wage to Cost of Living for a Family of 4

• The minimum wage is $7.25.
• This is 19.9% of the cost of living for a family of four ($36.37).

Ratio of the Minimum Wage to the “tipped” wage

• The tipped minimum wage is $2.13.
• This is 29.4% of the minimum wage.

Average unemployment benefits cover 10.0% of wages needed to cover cost of living.

Localities in North Carolina can not set the minimum wage above the state standard.

North Carolina does not extend its minimum wage policy to cover farmworkers.

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Worker Protection Policies Ranking: #51

Right to Organize Policies Ranking: #49

How much does it cost

to live in Columbus County?

MIT Wage Calculator

How Much is Enough to Live in North Carolina?

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https://www.bls.gov/oes/current/oes_nc.htm

• A single adult with no children needs to make $16.83/hr or $35,006/yr
• A single adult with one child needs to make $35.73/hr or $74,318/yr
• Married person with a child whose spouse does NOT work needs to make $33.46/hr
• Married couple with a child where both spouses work, both need to make $19.81/hr

What are the Most Common Low Wage �Underpaid Jobs in North Carolina?

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• Cashier
• Retail Salesperson
• Warehouse Worker Shipping/Receiving Worker
• Stock and Order Filler
• Customer Service Rep.
• Fast-food Cook
• Heavy and Tractor-Trailer Truck Driver

• Fast-food Counter Worker
• Waiter or Waitress
• Home Health or Personal Health Aide
• Nursing Assistant
• Janitor and Cleaner
• Restaurant Cook
• Light Truck Driver
• Maid and Housekeeper

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https://www.bls.gov/oes/current/oes_nc.htm

What Do These Jobs PAY?

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https://www.bls.gov/oes/current/oes_nc.htm

What Do These Jobs PAY?

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https://www.bls.gov/oes/current/oes_nc.htm

What Do These Jobs PAY?

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https://www.bls.gov/oes/current/oes_nc.htm

How Much is Enough to Live in North Carolina?

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https://www.bls.gov/oes/current/oes_nc.htm

• A single adult with no children needs to make $16.83/hr or $35,006/yr
• A single adult with one child needs to make $35.73/hr or $74,318/yr
• Married person with a child whose spouse does NOT work needs to make $33.46/hr
• Married couple with a child where both spouses work, both need to make $19.81/hr

The Crisis of �Low Wage Work

https://www.oxfamamerica.org/explore/research-publications/the-crisis-of-low-wages-in-the-us/

https://www.oxfamamerica.org/explore/countries/united-states/poverty-in-the-us/low-wage-map-2022/

What’s Happening in North Carolina?

https://www.oxfamamerica.org/explore/research-publications/the-crisis-of-low-wages-in-the-us/�https://www.oxfamamerica.org/explore/countries/united-states/poverty-in-the-us/low-wage-map-2022/

https://www.oxfamamerica.org/explore/research-publications/the-crisis-of-low-wages-in-the-us/�https://www.oxfamamerica.org/explore/countries/united-states/poverty-in-the-us/low-wage-map-2022/

https://www.oxfamamerica.org/explore/research-publications/the-crisis-of-low-wages-in-the-us/�https://www.oxfamamerica.org/explore/countries/united-states/poverty-in-the-us/low-wage-map-2022/

https://www.oxfamamerica.org/explore/research-publications/the-crisis-of-low-wages-in-the-us/�https://www.oxfamamerica.org/explore/countries/united-states/poverty-in-the-us/low-wage-map-2022/

What’s the Minimum Wage

in North Carolina?

$7.25/$2.13

(tipped �wage)

What Happens When We Raise the Wage?

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Minimum Wage Talking Points and Frequently Asked Questions, Civic Venture (NELP)

Raising the minimum wage helps small businesses!

• When people have more money to spend, they spend it locally!
• When people have less money they spend it at chain big box stores.

Raising the minimum wage does not increase prices!

• Consumer prices are not tied to wages but instead to profits.

Wage Comparison: �Whiteville, NC vs. Buckley, WA�

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https://www.bls.gov/oes/current/oes_nc.htm

• 5 Whiteville typical low-wage jobs e.g. Burger King or other fast food, retail cashier, hotel clerk, grocery stocker, cleaner
• Burger King in Whiteville pays $9.00 per hour
• Burger King in Buckley, WA, same population as Whiteville, makes $15.74 per hour

You deserve better �and so do your kids.

The WAGE FLOOR (Minimum Wage)

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https://www.bls.gov/oes/current/oes_nc.htm

• Minimum wage peaked in 1968 �= $14/hour in 2023 dollars
• It’s lost 27% of value since it was last raised in 2009
• If it had kept up with productivity: �$26 per hour
• Henry Ford: 1914 $5/day for 8 hour day �= $18.55 per hour in 2023

Minimum Wage Effects in Low-Wage Areas

Institute for Research on Labor and Employment

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“Minimum Wage Effects in Low-Wage Areas”, Godoey and Reich, IRLE, Jul. 2019 https://irle.berkeley.edu/minimum-wage-effects-in-low-wage-areas/

This study looked at the impact of increasing the minimum wage in areas with�lower cost of living, and found…�

• No adverse effects on employment or hours worked.
• No negative employment effect among women, Blacks, and/or Hispanics.
• Substantial declines in household and childhood poverty.

State Minimum Wages and Employment in Small Businesses

Fiscal Policy Institute

“State Minimum Wages and Employment in Small Business”, Fiscal Policy Institute, Apr. 2004 �https://fiscalpolicy.org/state-minimum-wages-and-employment-in-small-businesses

This study compared states with minimum wages above the federal minimum wage to states that were at the federal minimum wage between 1998 and 2004 and found...

• Total employment in higher minimum wage states increased at a 50% greater rate than in lower minimum wage states.�
• The number of businesses with under 50 employees grew by 3.9% in states above the federal minimum wage, and 1.0% everywhere else.�
• State minimum wages above the federal minimum wage has not adversely affected employment either in expansion or recession phases of the economy.

The Effect of Minimum Wages on Low Wage Jobs:

The Quarterly Journal Of Economics

“The Effect of Minimum Wages on Low-Wage Jobs”, Cengiz et al, Quarterly Journal of Economics, May 2019 �https://academic.oup.com/qje/article/134/3/1405/5484905?login=true

This paper used 138 state-level minimum wage changes between 1979 and 2016 and found:

• There was no change in the number of low wage jobs at or slightly above the minimum wage over the 5 years following any increase.�
• Beyond those directly affected by the minimum wage, there was a “spillover” effect that increased earnings for other workers at the bottom of the wage distribution.

“Minimum Wages and Employment: A Case Study of the

Fast Food Industry in New Jersey and Pennsylvania”

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National Bureau of Economic Research

“Minimum Wages and Employment…” Card and Krueger, National Bureau of Economic Research, Oct. 1993 �https://www.nber.org/papers/w4509

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This study examined 410 fast food restaurants in New Jersey and Pennsylvania after New Jersey increased its minimum wage (and Pennsylvania did not increase its wage). They found:

• Fast food employment in New Jersey increased by 13% more than in Pennsylvania;
• Stores in New Jersey that were not directly affected by the minimum wage had the same employment growth in New Jersey and Pennsylvania but…�
• Stores that had to increase their wages increased their employment.

Are Local Minimum Wages Too High?

Institute for Research on Labor and Employment

“Are Local Minimum Wages Too High”, Nadler et al, IRLE, Apr. 2019 �https://irle.berkeley.edu/are-local-minimum-wages-too-high/

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This study examined six cities across the country that had raised their minimum wage and found:

• No significant employment losses.
• Significant positive earning increases.
• That demand for low wage workers is inelastic, so raising the minimum wage cannot impact their employment prospects.