Age: Minimum wage workers tend to be young (under 25) which make 50% of minimum wage workers (who get paid exactly $7.25) and majority of that percentage are still pursuing their education and do not see low paying jobs as permanent jobs. Teens (16-19) make up 10% of the minimum wage, and young adults (25 and older) make up 2% of minimum wage workers.
Educational attainment : Workers from any type of educational background (from workers with no high school diploma to workers who earned their Doctorates ) make up less than 3% of minimum wage earnings in TOTAL.
Raising the minimum wage will cause the loss of many jobs, and keep workers in low paying jobs. This will cause a loss of opportunities for young people and people who want to advance into a profession. The necessity to gain skills to get into a workplace won't be available, because a large proportion of young people will tend to stay at low paying jobs.
Companies will decrease the number of employees and market production (which then inflation will have to accommodate to the changes). Which causes the rise of machinery and automation to go into the labor force and replace workers.
What happens if companies decrease the number of employees ?
Companies will start getting more selective with who they hire as employees. If selectiveness comes into place, then that puts into risk the least favorable candidates for a job. This will cause an increase rate of discrimination in the work place where unskilled applicants will not have the chance to be employed above skilled candidates.
Effects to Seattle's approach to raising the minimum wage. ($11) in 2020 they are pushing for $13.20
The University of Washington:
estimates that the average low-wage worker in the city of a Seattle lost $125 a month because of the raise in the minimum wage. This caused wage earnings to increase by 3%, while wage hours were decreased by 9 percent, which caused the workers budget to fall.