On Jan. 23, state Sen. Robert Marshall (D-Wilmington West) proposed a bill which would raise Delaware's minimum wage twice over the next two years.
Marshall plans to raise minimum wage from $7.15 per hour to $7.75 an hour in March 2009 and again to $8.25 per hour in March 2010. On the federal level, minimum wage will increase from $5.85 to $6.55 on July 24 and then to $7.25 in 2009. Marshall hopes to keep Delaware's minimum wage higher than federal minimum wage.
He said he has a history of improving the states wages.
"I sponsored and passed increases in Delaware's hourly minimum wage three times," Marshall said.
Employers on the low end of the labor scale must be valued and raising minimum wage would help those employees and the rising cost of living, he said.
"I recognize the value and importance of those that earn a low hourly minimum wage and the need for basic living expenses," Marshall said.
It is important that all citizens be aware of the need of higher wages and the productivity of those who work in the retail and agriculture fields, he said.
Marshall said he predicts raising minimum wage will improve Delaware's work force. Employers will benefit in efforts to retain workers, claiming the higher the wage is the more productive employees tend to be.
However, while higher minimum wages pose several positive outcomes, Marshall said the Chambers of Commerce and some business owners oppose the increased wages.
"They are usually concerned with the impact on the cost of running a business," he said. "But evidence suggests that raising wage has no direct impact on job creation, nor any impact on employers."
While there are some who oppose the senator's proposal, he has gained strong support within the state senate thus far.
Sen. Patricia Blevins (D-Elsmere) supports the bill and said the economy of the state will improve if minimum wages are raised.
"Less people will be in poverty it will bring the public to the middle class and take people off welfare," Blevins said.
She said although many businesses resent higher wages, the majority of the public supports the bill, including college students.
Saul Hoffman, economics professor, said the bill will most likely not support college students. People in other demographics will benefit more than students.
"It is more likely to affect teenagers, poor families and the non-English speaking demographic," Hoffman said. "Perhaps young adults who did not finish high school will benefit as well."
He said minimum wage has been an issue since 1938, the year it was first introduced. Since then it has had widespread public interest. Economists have a mixed view on minimum wage raises, and while it puts more money in society's pockets, raising the minimum wage can cause negative side effects, he said.
"It is possible employees will work fewer hours or it can make it difficult for people to find jobs," Hoffman said.
He said the one major question that needs to be asked is if the possible negative effects outweigh the overall positive outcome.
Emily Manz, president of Students in the Public Interest, said she believes the issues of minimum wage are important. Manz said when the federal government passed the bill to raise minimum wage last year, it was the first in many years. Costs were going up but wages were staying the same.
Manz said she is unaware of how much interest minimum wage is towards students in general but said many college students are paying for themselves and struggling.
"Some students have to take a year off school just to pay for another year because it's too expensive," she said.
She said she feels the issue of a higher minimum wage needs to be addressed.
"The main message is that people don't realize minimum wage isn't a living wage. It is not enough to support themselves," Manz said.
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