Decreases Productivity and Education Living wage sends the wrong messages kids will devalue education and – because they think wage determination is just politics Baird 02 Charles, a professor of economics and the director of the Smith Center for Private Enterprise Studies at California State University at Hayward, Living Wage on Liberty, “The Folly,” Ideas June 2002, pp. 16-19. [PDI] EPF researchers have pointed out a unique harm done by LWOs. The high school dropout rate of workers who earn between $5.15 and $8.15 is double that of workers earning per hour between $8.15 and $10.15 To the extent that an LWO results in increasing the number of an hour. high school dropouts receiving more than $8.15 the wrong message is sent to both per hour, groups. High school dropouts learn that in wage determination, politics trumps education and training, and the more productive learn that their training and education provide fewer advantages than before. The productivity of both groups will decline, and younger people still in school will have less of an incentive to stay there.
Decreases Productivity and Education Living wage sends the wrong messages – kids will devalue education and because they think wage determination is just politics Baird 02 Charles, a professor of economics and the director of the Smith Center for Private Enterprise Studies at California State University at Hayward, “The Living Wage Folly,” Ideas on Liberty, June 2002, pp. 16-19. [PDI] EPF researchers have pointed out a unique harm done by LWOs. The high school dropout rate of workers who earn between $5.15 and $8.15 per hour is double that of workers earning between $8.15 and $10.15 an hour. To the extent that an LWO results in increasing the number of high school dropouts receiving more than $8.15 per hour, the wrong message is sent to both groups. High school dropouts learn that in wage determination, politics trumps education and training, and the more productive learn that their training and education provide fewer advantages than before. The productivity of both groups will decline, and younger people still in school will have less of an incentive to stay there.