CarriageTowneNews.com, Kingston, NH

Online Extras: News to Note

February 15, 2013

How does the U.S. minimum wage compare to those around the world?

WASHINGTON — In his State of the Union address this week, President Barack Obama announced that he would seek to raise the federal minimum wage to $9 an hour, a measure that would form the centerpiece of an agenda aimed at reducing incoming inequality in the United States.

That announcement got us wondering: How does the U.S. minimum wage stack up against the minimum wage in other countries? The answer depends somewhat on how one chooses to measure the minimum wage and the standard against which it is measured.

One handy way of comparing the minimum wage across borders is to measure it relative to median full-time wages, which indicates the gap between the lowest wage earners and the mid-point of the income spectrum. On that measurement, the U.S. minimum wage is about 38 percent of the median, which is indicative of high levels of income inequality in the United States. Countries like Australia, Belgium, France, Ireland and New Zealand have both higher absolute minimum wages and minimum wages that fall closer to median wages. In other words, living on the minimum wage in one of those countries puts an individual much closer to achieving a median income than it would in the United States. Unstated in all of this, of course, is that the United States is significantly wealthier than all of these countries.

If one looks at minimum wage from an hourly perspective, the picture is much the same. Of the 23 countries for which the Organization for Economic Cooperation and Development has data, the United States ranks 10th in hourly income in PPP dollars, a measurement of purchasing power that indicates how much stuff an employee can buy with an hour of work.

All this is to say that, relative to its wealth, the United States underpays its least-skilled workers.

1
Text Only
Online Extras: News to Note

New England News
Obituaries
  • Elwood (Al) Shaw, 93

    Meredith, NH — Elwood (Al) Shaw, 93, of Center Harbor, passed away peacefully on Sunday, March 30, 2014, at Forestview Manor in Meredith. He was the beloved husband of the late Greta L. (Sykes) Shaw, to whom he was married for 62 years.

    Continued ...
    The Carriage Towne News Thu, April 17
    7 days 1 Photo
  • Jo Ann Hughes, 79

    Sandown, NH — Jo Ann (Phelps) Hughes of Sandown, New Hampshire passed away on Thursday, March 27, 2014, surrounded by all of her children at home. She was born in Little Bend Kentucky, to Beatrice (Shepherd) Phelps and John (Cat) Phelps in 1934. Jo Ann was predeceased by brothers, Marcus Phelps, Johnny Phelps, Forrest Phelps and sisters, Juanita Phelps, and Jeanette (Phelps) Vincent. She is survived by brother, Donald Quiggins of Georgia; sisters, Geneva (Phelps) Stanley of Kentucky, and Frances (Phelps) Bratcher of Tennessee who had just visited Jo Ann in September of 2013.

    Continued ...
    The Carriage Towne News Thu, April 17
    7 days 1 Photo
  • Sherry Lynn (Cookson) Scanzilo

    Raymond, NH — Sherry Lynn (Cookson) Scanzillo, 58, of Raymond, N.H., passed away Saturday, April 5, 2014, at the Elliot Hospital surrounded by her loving family after a sudden illness.

    Continued ...
    The Carriage Towne News Thu, April 17
    7 days 1 Photo
  • Thomas Hugh Clinton, 73

    Atkinson, NH — Tom passed away on Sunday, March 30, 2014, at Elliot Hospital in Manchester. Tom was born on October, 30, 1940, at Clover Hill Hospital in Lawrence, Mass., as the only child to Hugh Clinton and Evelyn (Forcier) Clinton. Tom graduated from Methuen High School in 195

    Continued ...
    The Carriage Towne News Thu, April 17
    7 days 1 Photo
  • Jo Ann Hughes, 79

    Sandown, NH — Jo Ann (Phelps) Hughes of Sandown, New Hampshire passed away on Thursday, March 27, 2014, surrounded by all of her children at home. She was born in Little Bend Kentucky, to Beatrice (Shepherd) Phelps and John (Cat) Phelps in 1934. Jo Ann was predeceased by brothers, Marcus Phelps, Johnny Phelps, Forrest Phelps and sisters, Juanita Phelps, and Jeanette (Phelps) Vincent. She is survived by brother, Donald Quiggins of Georgia; sisters, Geneva (Phelps) Stanley of Kentucky, and Frances (Phelps) Bratcher of Tennessee who had just visited Jo Ann in September of 2013.

    Continued ...
    The Carriage Towne News Thu, April 10
    14 days

Stocks