V. STATE MINIMUM WAGE PATTERNS

In employment not covered by federal
legislation a lower minimum wage for
teenagers, learners or students is the

pattern in most States. (Chart VII)

Chart VII

Many States Set Lower Minimum Wage Rates for Teenagers,

VI. EFFECTS OF A YOUTH DIFFERENTIAL

ON FAMILY INCOME

One of the major reasons for raising minimum
wages is to raise the standard of living of
low-income families. A lower-minimum wage
for young people would not make a
significant change in family income.

Most young people do not make substantial contributions to the family--7 out of 10 working teenagers add less than 10 percent to family income. (Chart VIII) Therefore modest variations in their wage rates are not critical to family support but are important in opening up job opportunities for them.

96-478 O 73 - 20

Percent of family income contributed by teenagers (16 to 19).

XVII. A DIFFERENTIAL WILL HELP OUR YOUTH

Young persons face many hurdles in trying
to find employment. The high unemployment
rates among this group indicate a basic
problem in our economic system. Despite
their lack of experience and the other
disadvantages that they bring into the labor
market, we make it difficult for our youth
to enter jobs at less than the full adult
minimum wage. Paradoxically, this denies
them access to the experience which can
make them more productive and higher-
earning workers in the future.

This is a very serious problem. Jobs are
important in helping teenagers gain work-
experience and in providing the feeling of
independence and self-reliance that young
people seek. They also contribute to a
reduction in high school dropout rates.

A youth differential in the minimum wage
would offset some of the hurdles that young
people face in finding employment and
would open more job opportunities to
young people.