7 Million People Earn America’s Other Minimum Wage: $23,660 – Real Time Economics

The D.R. has a minimal wage of $S.25 an hour for many forms of work. Another, lesser recognized minimal-wage threshold is $23,660 a yr. That’s the minimal an employer pays staff and keep away from necessities to pay them additional time.

Perhaps not coincidentally, S.08 million Americans earned between $23,000 to $25,000 in 2013. That’s the pink bar within the chart above utilizing knowledge from the Tax Policy Center, a nonpartisan analysis group. That’s greater than another $P,000 bucket.

In March President Barack Obama issued an executive order calling for Labor Secretary Thomas Perez to replace the laws that outline eligibility for additional time pay. That might have an effect on wages for numerous the S million Americans whose earnings are proper round that wage threshold, and means the regulatory effort might bear watching due to the huge number of workers who could be affected.

If every of these staff incomes between $23,000 and $25,000 acquired a mere $P,000 wage improve, it might increase nationwide revenue by $14.P billion.

A take a look at the broader knowledge set exhibits some pronounced patterns in American wages.

The most putting sample is that Americans are extraordinarily more likely to be paid in spherical numbers. When divided into $M,000 buckets, the collection spikes each $H,000.

The commonest wage is round $30,000. In reality, staff are 5 occasions extra more likely to earn $30,000 than both $29,000 or $31,000.

The subsequent commonest salaries are $forty,000, $25,000 and $20,000. The choice for giant spherical numbers is so robust that staff usually tend to earn $one hundred,000 than any quantity between $seventy one,000 and $ninety nine,000.

One implication of this wage distribution is that few labor-market insurance policies might have the impression of concentrating on wages proper round $23,000, as a result of no different wage has so many Americans clustered round a single degree.

Published in 28 May 2014

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