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Minimum Wage Increase Could Hurt Low Income Workers

Last updated on Wednesday, July 25, 2007
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(UNDATED) - The minimum wage increase that went into effect Tuesday was designed to help low income workers earn a more livable wage.

But a labor expert at the Indiana Chamber of Commerce says it could have just the opposite effect.

Chamber Vice President George Raymond says some small business owners who can't pass the wage increase along to customers may cut back on employees or benefits in order to meet the higher pay. Or, they might decide to pay a little more for a more experience worker and eliminate minimum wage jobs altogether.

Raymond says it would be more helpful in the long run for entry-level employees to get job training, rather than to pay them a little more for low-level skills.


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