One more insidious element of this whole minimum wage/living wage debate: The higher the minimum wage, the less incentive an industrious person has to seek a higher-paying job.
People who think workers with low-paying jobs deserve higher wages ignore the fact that employers set wage rates based on the expectation that a worker will produce work equivalent to the value of that wage plus benefits. If the worker proves more valuable than his wage rate, the employer will likely look for a way to employ his talents in a more productive job that merits higher pay. (Hence the promotion process.)
A skilled worker who does not advance within that company should look for higher-paying opportunities elsewhere that allow him to use his talents. Raising the minimum wage discourages that process.
It’s not likely to make much difference as long as the minimum wage falls well below the level that would guarantee a worker a comfortable existence. But if the minimum wage ever approaches a level that guarantees a worker a wage that reduces his willingness to strive for more, we’ll see the beginning of the slide toward mediocrity that is France.
