8 What’s Up with the Minimum Wage?
Eunhye Hess and Hann Bingham Brunner
Introduction
Over the past decade, labor unions and other social-justice organizations have called for a federal minimum wage increase from $7.25 per hour to $15 per hour. While the Fight for $15 campaign has been blocked at the federal level, a number of states have passed their own minimum wage laws leading to significant discrepancies in minimum wage rates across the country.
Colleges across the US have also begun to assess whether or not they should increase minimum wage rates on campus. Campus minimum wage rates particularly affect non academic/ non-administrative staff and the student population. Non-academic/ non- administrative staff such as custodians, cleaners and groundskeepers are some of the lowest paid employees on campus. Additionally, many students rely on hourly-paying campus jobs to pay their college tuition and fees. This is particularly true for international students, whose F1 visa status only permits them to work on campus.
However, increasing minimum wage on campus does not always bring benefits. Universities always face budget cuts and unstable revenues, and it is impossible to pay a minimum wage adjusted for inflation each year. Also, most entry-level jobs on campus are the minimum wage jobs, mainly for young and inexperienced students. Increasing the minimum wage might risk their chance for employment as older and experienced people could fill in those positions.
In short, advocates on both sides of the debate have strong opinions about whether the minimum wage should be increased on campus. In this simulation, you will become one of those advocates. In the next section of this chapter, you will learn how the Fight for $15 Simulation works in practical terms and about the important skills you will gain by participating in this simulation.
Overview
This simulation engages you in critical discussions about the minimum wage as well as social and racial justice in higher education contexts. The chapter begins with an opportunity for you to discuss how the themes of the simulation relate to your own lived experience. You will also engage with reading, listening, and research activities to help build your knowledge of debates around increasing the minimum wage. You will then take a position on the campaign to raise the federal minimum wage by adopting a persona in the role-play phase. After reflecting on the role-play, you will either write a letter to the editor of a local newspaper or produce a podcast on the Fight for $15 campaign. As shown below, the simulation has five distinct phases.
How the simulation works
| Phase | Phase Description | Activities |
| 1 | Activation | Discussion 1 & 2 |
| 2 | Comprehension | Listening 1
Reading 1 & 2 |
| 3 | Simulation | Role Assignment & Role Preparation
Role Play |
| 4 | Reflection | Debriefing Activity
Critical Reflections |
| 5 | Application | Letter to the Dean or Podcast |
You will gain a number of important skills as you participate in the simulation. These skills are sequenced from simple tasks such as defining and describing to more complex tasks such as synthesizing and evaluating.
After completing this simulation, you will be able to:
- make connections between your own lived experiences and economic equity.
- define key terms relating to the minimum wage and the economy.
- describe the central arguments around the Fight for $15 campaign.
- make predictions about the key factors that influence minimum wage rates.
- summarize issues related to minimum wages.
- synthesize knowledge on minimum wages.
Phase 1: Activation
In this phase of the simulation, you will draw on your background knowledge of wages and the cost of living. This will help prepare you for the listening, reading and research activities in Phase 2 of the simulation. It will also allow you to share your experiences and ideas with your classmates.
Discussion Activity 1
Work with a partner. Look at the following images and estimate what the hourly rate of pay might be for each of these college campus workers. You can estimate a pay range (i.e. $15 – $ 25) as opposed to a single figure. Once you have made your estimates, be prepared to share these with the rest of the class.
Food service worker
Janitor
Groundskeeper
Coffee shop worker
Student library worker
Teaching Assistant
Discussion Activity 2
Work in a small group. Discuss the following questions and be ready to share your responses with the class.
- Have you ever worked a part-time job? If so, what was it?
- How much did you earn per hour?
- Did you negotiate your rate of pay?
- What type of products do you typically buy that cost the same as one hour of your labor?
- What do you expect to earn per hour in your chosen profession after graduating?
- Do you know the minimum wage in your own state/country?
Phase 2: Comprehension
The purpose of this phase is to help you expand your knowledge of the debates around raising the minimum wage. You will watch one short video and read two texts. The video will provide you with some background information on how the federal minimum wage is set in the USA and how this compares with other countries. Review the questions below before watching the video. For Reading 1, you will define some key terms and answer a series of comprehension questions. For Reading 2, you will write a descriptive summary of the text.
Listening Activity 1
Watch the Vox Video “What the US gets wrong about minimum wage” (VOX) and answer the following questions:
- Timestamp – 00-1:09
- What is a minimum wage?
- What is inflation?
- Timestamp – 1:09-1:54
- What year did the first bill become law?
- What is the minimum wage now?
- Timestamp – 1:55-2:53
- How do other countries deal with minimum wage problems?
- Timestamp – 2:53-5:06
- Oklahoma follows the federal minimum wage (True / False)
- What are some problems with the minimum wage in the U.S.?
- What problems would a more stable minimum wage solve?
Reading Activity 1
Can a Family Survive on the U.S. Minimum Wage? (Investopedia)
- Pre-reading Key Terms: poverty line; living wage; cost of living; wage theft; grassroots efforts
- Comprehension Questions
- What recent political and grassroots attempts have been made to raise the minimum wage?
- Use the interactive map to find the highest minimum wage. What state is it in? Why do you think this state has the highest minimum wage?
- Now use the map to find the lowest minimum wage. What state is it in? Why do you think this state has the lowest minimum wage?
- In addition to low pay, what other problems do minimum-wage workers face in the workplace?
- According to the text, what are some of the characteristics of minimum-wage workers?
- Why are some business organizations against raising the minimum wage?
Reading Activity 2
Read Mark Wilson’s article on “The Negative Effects of Minimum Wage Laws (pp. 1-3; pp. 6-10)
- Summary Prompt: Based on the reading, provide a brief history of the issues regarding minimum wage laws (pp. 1-3; word limit: 100-200 words), and the effects of the minimum wage discussed by the author (pp. 6-10; word limit: 100-200 words).
Phase 3: Simulation
In this phase, you will be given a role to play in a simulated discussion event (e.g., 45 -minute panel discussion). It is important that you understand the context and your role to prepare for the role playing.
The Context
Federal and state inaction on the minimum wage and increasing pressure from grassroots movements for greater economic equity on campuses has led many universities to make their own decisions on minimum wage rates. The university you are affiliated with is holding a series of panel discussions for students, faculty, staff and other stakeholders to discuss whether it should increase the minimum wage on campus to $15.
Agenda: Should the university increase the minimum wage on campus to $15?
Roles
You will be assigned a role to play in this phase of the simulation. There are five participant roles on each side of the debate and one moderator role.
Moderator: University President
Your task is to introduce the issue at the beginning of the panel discussion, welcome the participants, and moderate the discussions. Allow every participant (role) about 3-5 minutes to talk and make sure that everyone gets a turn to express their opinion. Develop one question for each group’s presentation and ask the question after their presentations. The moderator role can be played by students or the instructor of the course
IN FAVOR OF INCREASING MINIMUM WAGE
Role 1. Associate Professor of Economics & Director of the Center of Applied Economic Research
Description
- You are in favor of increasing the campus minimum wage because you believe that the federal minimum wage is too low, not reflecting inflation. Some states have a higher minimum wage, like California with $15.50, Arkansas with $8.50, and New Mexico with $9. The current federal minimum wage is $7.25, but based on inflation it should have been at least $12 an hour in 2015. Even looking at minimum wage in the past, adjusted for inflation, the 1968 minimum wage would be $8.68 in 2016 money, even higher than the current minimum wage.
Role 2. International Student Worker
Description
- You are in favor of increasing the campus minimum wage because as a college student, you experience the hardship living with minimum wage, paying college tuition as well as bills. In the past people could pay for school with minimum wage jobs, but now they can’t pay for college without both a job and student loans, which take years to pay off. With a higher campus minimum wage adjusted for inflation, students would have to take out fewer loans to pay for the cost of college.
Role 3. Director, Student Employment Office
Description
- You are for increasing the campus minimum wage because you are concerned about the possible lack of workforce at the university due to other places paying higher wages. Many large companies, such as Target and Amazon, have raised the minimum wage for their employees. If the university does not raise the campus minimum wage, the university would not attract many people to work on campus as they pay less than the other major companies.
Role 4. Diversity, Equity & Inclusion Officer
Description
- You are in favor of increasing the campus minimum wage and also want to bring critical attention to subminimum wage loopholes that allow employers to pay employees with disabilities less than $7.25 per hour.
Role 5. Custodian
Description
- You are in favor of increasing the campus minimum wage because increasing the minimum wage is a social and racial justice issue.
- You have worked as a custodian at the university for 10 years and earn under $15 per hour.
AGAINST INCREASING MINIMUM WAGE
Role 6. Associate Vice President for Administration and Finance
Description
- You are against increasing the campus minimum wage because you believe that the university will not be able to afford to pay a minimum wage adjusted for inflation. The cost of running a university is already high, and the university cannot balance its budget with this kind of increased costs.
Role 7. Vice-President Student Government Association & Economics Student
Description
- You are against increasing the campus minimum wage because you are concerned that increasing the minimum wage would backfire for the entry-level and low-skill job seekers. Most minimum-wage jobs are for young people who are still learning skills and don’t have a lot of job experience, like teenagers. If we raise the minimum wage, there will also be older or more experienced people who want those jobs as well, making it hard for teenagers to find jobs and learn work skills.
Role 8. Information Officer, Department of Labor
Description
- You are against plans to increase the campus minimum wage because the minimum wage increase will not solve the issue of poverty. Employees earning a minimum wage only take up a small portion of the whole employee population. Based on studies, when the minimum wage was raised in the past, it did not have any effect on poverty in the US.
Role 9. Dining Contractor, Student Union Location
Description
-
You are against plans to increase the campus minimum wage to $15. Your stance is rooted in concerns related to the potential impact on the dining services’ operational costs and overall financial viability. You believe that a sudden increase in the minimum wage may lead to challenges in maintaining the current level of service and quality of food offerings within budget constraints. For example, you are concerned that if labor costs rise, it might become necessary to increase meal prices. This could potentially impact the affordability of dining services for students, faculty, and staff, creating a ripple effect on the overall satisfaction of the campus community.
Role 10. Chair, National Federation of Small Businesses
Description
-
As the Chair of the National Foundation of Small Businesses, your role is to represent the interests of small businesses, including those directly impacted by the university’s decisions. With a focus on economic sustainability and the challenges faced by smaller enterprises, you are against plans to increase the campus minimum wage to $15. Your perspective is rooted in the belief that while fair wages are important, an abrupt increase in the minimum wage could pose significant challenges for small businesses associated with the university. You are concerned about the potential financial strain on these businesses, which may lead to operational difficulties, job cuts, or even closures. You highlight the competitive landscape, emphasizing that small businesses often compete with larger enterprises. A substantial increase in the minimum wage might put smaller businesses at a disadvantage, impacting their ability to remain competitive.
Phase 4: Reflection
Debriefing Activity: In small groups, discuss the following questions. Be prepared to share your thoughts with the whole class.
- What did you think about the topic for this simulation? Were you already familiar with it?
- Was it easy or difficult to create an argument for your side of the issue? Why?
- What did you think of your role in the simulation? Did you personally agree or disagree with your role’s required stance on the issue?
Critical Reflection Activity
- Did any of the participants/ groups make particularly persuasive arguments? If so, which one/s? What made the arguments more persuasive?
- Did any of the participants/groups make arguments that you thought were weak? If so, what were the arguments? What made them weak?
- Which individual participant did you find the most knowledgeable / most persuasive in the role play? Why?
- Which group did you find most persuasive? Why?
Phase 5: Application
OPTION 1: Letter to the Editor of the College Newspaper
You are writing an opinion letter to the Editor of the College Newsletter after hearing both sides of the arguments for and against increasing the minimum wage on campus to $15.
Prompt: In the form of an opinion letter, write to the Editor of the College Newsletter either in favor or against increasing the minimum wage on campus to $15. In your letter, clearly indicate the pros and cons of increasing the campus minimum wage to $15 and write the details to support your position. Use sources from your role, other roles, and outside sources.
OPTION 2: Podcast
Prompt:
Option 3: Argumentative Essay
Prompt:
References
VOX, n.d. What the US gets wrong about minimum wage. Retrieved on July 2023 from https://www.youtube.com/watch?v=_M3vTvm2cfM
Wilson, M. 2012. The Negative Effects of Minimum Wage Laws, 701, Policy Analysis. https://www.cato.org/sites/cato.org/files/pubs/pdf/PA701.pdf
Bloomenthal, A. 2022. Can a Family Survive on the U.S. Minimum Wage? Investopedia. Retrieved on July 2023 from https://www.investopedia.com/articles/personal-finance/022615/can-family-survive-us-minimum-wage.asp
About the authors
name: Eunhye Hess
name: Hann Bingham Brunner
institution: Oklahoma State University
Hann Bingham Brunner is a PhD Candidate in Applied Linguistics at Oklahoma State University with a focus on disability and identity. They are Associate Director of the International Composition program and Assistant Director of First Year Composition.