Better than a jobs program, Gen-Z would benefit from a lower minimum wage

Any celebration of Washington state’s expected minimum wage hike will likely be short-lived, especially for young people looking for work. A $13.50 minimum wage will drive out these workers, and policy analyst Preston Cooper argues they need a youth minimum wage of their own.

Under federal law, workers under 20 can receive no less than $4.25 an hour during their first 90 days of employment, but because state laws supersede, many states cannot take advantage of the lower “youth minimum wage.”

“Proponents of minimum-wage increases argue that their effect on job availability is limited,” Cooper said. “For adults, there is some evidence to support this. But when it comes to young workers ages 16 to 19, the weight of evidence points in one direction: Minimum-wage hikes reduce employment opportunities.”

His point furthers the trend not just in Washington, but in states and cities across the country where there are minimum wage hikes. Young, inexperienced workers are often the first to find themselves without a job, as employers hire more experienced workers or replace human workers with robot kiosks, especially if they go on strike. These workers may turn to more “informal” work with fewer opportunities.

It will be especially difficult for young, entry-level workers to convince employers they deserve to make $13.50 an hour without any prior experience or references. So the cycle is perpetuated as these workers have even less of a chance to build up their résumés, and without a job, they’re also more likely to turn to crime.