Terry A. Henderson: ‘Bunching up’ wages

March 18, 2014 

In all the costs and benefits of raising the minimum wage to $10 or higher, I have not seen a discussion of the cost of what might be called the “bunching up” effect of increasing the rate. As a matter of equity, don’t the wages also have to be raised of all workers currently making more than the minimum to account for seniority and experience?

Otherwise, those currently making $10 an hour would be making the same as those at the new entry level and so on. This would seem to make both the costs and benefits greater than I have seen accounted for.

Terry A. Henderson


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