N. Jersey Democrat wants to raise minimum wage to $8.50 an hour, among nation's highest

January 20, 2012|By Joelle Farrell, Inquirer Staff Writer

While Gov. Christie is pitching tax cuts for all in 2012, Assembly Speaker Sheila Oliver (D., Essex) wants to give a boost to the 40,000 New Jerseyans who make the $7.25 hourly minimum wage.

Oliver wants to bump the minimum rate to $8.50 and tie it to the consumer price index, which measures the cost of living.

"At a time when some presidential candidates are saying poor people should be demanding jobs and not welfare, this proposal is about livable wages for the lowest-income earners," she said during the Assembly's reorganization in Trenton this week. "Quite simply, we should all support economic stimulus, increased consumer spending."

Republicans, in the minority in both chambers of the Legislature, worry that raising the rate will put pressure on already strained employers.

"No matter how well-intentioned, job creators can't just absorb this because people in Trenton tell them to," said Senate Minority Leader Tom Kean Jr. (R., Union).

Christie, a Republican, said Thursday he would consider raising the minimum wage but first wanted to ensure the state was moving toward a drop in its 9 percent unemployment rate. A job that pays $7.25 an hour is better than no job, he told a town-hall meeting in Irvington, according to Bloomberg News.

"We've got to make sure we get more people employed, not just more money for people who are already working."

Raising the minimum wage can lead some employers to hire fewer workers or offer employees fewer hours, some economic studies show.

But Philip Harvey, an economist and lawyer who teaches at Rutgers School of Law-Camden said the effect was slight and tended to hit only the youngest workers, students, and other part-timers who typically live at home or attend college.

"A lot of ink has been spilled over whether it's a slight increase or a slight decrease in employment, but the truth is that all of the research shows there's very little negative effect if any," he said. "You don't need to worry that it's a job killer."

The benefits are significant for most low-wage earners, adults 20 and older who on average bring in nearly 50 percent of their household income, said David P. Cooper, an analyst at the Economic Policy Institute in Washington, which advocates for low- and middle-income workers.

Most of those in New Jersey and nationwide who make the minimum wage are white women, according to demographic information.

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