Indiana News

Some States Considering Minimum Wage Hike


Given the economic recovery, some states are considering raising their minimum wage.


However, one Indiana economist says it's only a "feel good" move that can actually hurt employers and some workers. Ball State University's Dr. Mike Hicks says the minimum wage only affects one in every 50 adult workers. Hicks adds that even half of those workers tend to be waiters and waitresses who also make tips. Hicks says a minimum wage hike would really only affect teenage and some college-age workers. He says raising the minimum wage also raises the cost of employing workers.

Hicks says the minimum wage increases of 2008 through 2010 had a large negative impact on teen employment in Indiana. The national minimum wage is currently $7.25. Hicks says many teens work at a higher wage. He adds raising the minimum age would likely benefit those who work in more affluent areas to the detriment of those who work in poorer inner-city and rural areas.


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