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September 30, 2005

Britain's Minimum Wage to $8.89 per hour

How pathetic is the US minimum wage of $5.15 per hour compared to the United Kingdom, where the minimum wage will increase to $8.89 per hour on Saturday, Oct. 1.

Predictably, business is bleating about the cost and supposed employment effects. However, the United Kingdom had no official minimum wage until 1999, but studies have shown no adverse employment effects from its introduction.

In fact, since introducing its quite high minimum wage, the United Kingdom has seen better job growth than the United States and in 2003 (according to OECD comparison), had a higher percentage of its working population employed than the United States.

So if the UK can employ more people with a minimum wage so much higher than the US, it shows that the arguments against raising our minimum wage are empty.

Posted by Nathan at September 30, 2005 12:42 AM