Entry-Level Wage Growth | GatewayJobs.com

dvocates of minimum wage increases argue that the minimum wage must be regularly increased to ensure that low-skill individuals receive better pay. Supporters habitually insist that millions of minimum wage employees have not received a raise since 1997. This is simply false and arguably classist. The vast majority of minimum wage recipients don't need a handout to get a raise. Every year, nearly two-thirds of employees at or near the minimum wage receive an increase in pay. These raises result from their increased skill level and experience—and their work effort.

Minimum wage employees receive wage hikes relatively frequently, largely because they tend to be new entrants or reentrants to the workforce who can quickly acquire the skills necessary to achieve higher earnings. Research out of Miami University of Ohio and Florida State University found that minimum wage employees are approximately five times more likely to be entrants from a spell of non employment than those earning above the minimum. As these new employees increase their skill level, they experience significant wage growth.

The median wage growth for all minimum wage employees is over 10% annually, and those working full-time enjoy a median wage increase of nearly 14% each year. This is nearly three times the wage growth for all employees.

Annual Median Wage Growth

Unfortunately, there will always be a group of minimum wage employees who fail to increase their skill level and corresponding pay. Wage hike supporters point to these individuals as justification for a minimum wage increase. But the unintended consequences of such an increase are most harsh for these employees. Employees unable to increase their wages on their own are those most likely to lose their jobs in the event of a mandated wage hike.