$15-an-Hour Minimum Wage Could Further Sting Teen Employment

Young people, who disproportionately lost jobs during the Covid-19 pandemic, could struggle to find jobs, but they may also see raises

By Allison Prang of The WSJ. Excerpts:

"Some businesses say a higher minimum wage for teens could affect staffing plans.

Nader Masadeh, chief executive of Ohio-based restaurant chain Buffalo Wings & Rings, said teens are around 25% of the restaurants’ staff. Should the federal minimum wage go up, he said his first step would be to increase menu prices. If he has to cut staff, teens would be let go first, he added.

“Employers will not be able to afford to hire unskilled and inexperienced workers,” Mr. Masadeh said."

"The proposed minimum-wage increase would come at a time when a smaller share of teens are working than in the past. Last year, 34.5% of 16- to 19-year-olds worked or sought employment versus more than half in 1980, according to the Labor Department.

Should teens struggle to find jobs with a higher minimum wage, they could miss out on an opportunity to gain workplace skills.

“Experience is valuable,” said Abigail Wozniak, a Ph.D. economist at the Federal Reserve Bank of Minneapolis. She compared it to exercise. “There’s something about being connected to the labor force,” Dr. Wozniak said. “You need to have a structure, you need to have obligations.”"