Introduction
Minimum wage and digital divide are the two hotly debated topics in the present societies. Minimum wage in this context refers to the minimum amount money that an employer is supposed to pay an employee for a task performed during a specified period. Some perceive that minimum wage ought to be increased while others are against such increments. On the other hand, the society faces the problem of digital divide. The phrase digital split is also used to refer to the digital divide. Digital Divide denotes the gap that occurs in terms of access to information between individuals who can access the internet and those who cannot gain access to such facilities. In this article, the author shall discuss the importance of increasing minimum wages as well as the need for providing more infrastructures such as electricity and education as one of the ways of addressing digital split in the society.
Minimum Wage
Krisberg, K. (2015). Raising minimum wage good for public health, not just wallets: advocates call for federal increase. The Nation's Health , 45 (2), 1-12. Retrieved from http://thenationshealth.aphapublications.org/content/45/2/1.1.full.
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Krisberg (2015) argues that wage is not only related to health rather, it is also twined to other factors that are essential in creating better health. These factors include secured homes, proper nutrition, as well as good schools. The article also shows how the state of Minnesota turned out to be a state paying the highest minimum wage yet it was formerly ranked as the state that was paying the lowest minimum wage. Owing to the increase, the employees in Minnesota are now earning $9.50 hourly compared to those under the federal-state who are earning $ 7.25 per hour. The article also indicates that increasing wage rates would reduce cases of premature deaths. It quotes a study issued in 2001 in the American Journal of Public Health that stated that increasing the minimum wage would lower the problem of premature deaths by 5%.
Furthermore, the article indicates that households aged between 24 and 44, and who earn about $20,000 will be in good position to ensure that their children complete their high school education hence reducing the issue of early pregnancy by 22%. The report also shows how increasing the minimum wage among low-income individuals in California led to a prevention of about 400 premature deaths. Krisberg (2015) also shows how such a move would increase life expectancy. Furthermore, the article shows how the increase of minimum wage to $10.65 in Illinois led to a reduction in instances of HIV/AIDS. The article notes that HIV/AIDS is a disease that is currently associated with poverty in vast ways. As such increasing the minimum wage would help in curbing the disease by reducing poverty in the society. Krisberg, (2015) also indicates that such increment would reduce diseases that are associated with stress since low income among societal members causes distress to households because they cannot afford basic requirements such as good food and better shelter.
Schmitt, J. (2013). Why does the minimum wage have no discernible effect on employment? Center for Economic and Policy Research , 22 , 1-28. Retrieved from http://cepr.net/documents/publications/min-wage-2013-02.pdf
Schmitt, (2013) indicates that most economists have concentrated their efforts on how minimum wage affects employment. According to this author, many economists have conducted studies to indicate that increasing the minimum wage would result in an increase in the rates of unemployment. Schmitt (2013) is an opponent to such notions by stating that instances of unemployment post increase in minimum wage very little and in some instances, they do not occur at all. The article provides various forms of adjustments that employers consider after implementing an increase in minimum wage. The adjustments models proposed by the author include the competitive, institutional, and the dynamic monopoly models. Nevertheless, Schmitt (2013) also proposes the various channels that the organization can use to ensure that there is a successful minimum wage increase. These include a reduction in the amount of hours an employee works, a decrease in benefits that are non-wage, reducing the number of training, vary the employment composition, increasing prices, improving worker efficiency (motivation), wage compression, and reducing turnover among others.
Schmitt (2013) asserts that the most probable result from such actions would be a decrease in the cost shock due to an increase in minimum wages. He indicates that most scholars focus too much on the impact that such costs have on employment yet the employers have other mechanisms or rather channels to ensure that they adjust to the changes caused by the increase in minimum wages. Apart from the ones mentioned above, Schmitt (2013) adds that the employers also have the option to reduce the salaries of workers who are highly paid in addition to ensuring that the worker's productivity is improved by embracing autonomy. He indicates that such a move would see the workers working independently and more responsibly. Employers can also increase the prices of their commodities or accept the small revenues they generate. Importantly, increasing wages would motivate the workers to work extra hard for the organization hence making it be more productive. Nonetheless, in the many adjustment channels proposed by Schmitt (2013), the most valid or rather viable adjustment channel is the decrease in labor turnover. This channel is vital since it significantly saves the employers on costs.
Huang, Y., Loungani, P., & Wang, G. (2014). Minimum wages and firm employment: Evidence from China. Working Paper No. 173 . Retrieved from https://www.dallasfed.org/assets/documents/institute/wpapers/2014/0173.pdf.
Huang, Loungani & Wang examined how the minimum wage affects the rates of employment in China (2014). From the data gathered from various forms, the article investigated the heterogeneous effects from such firms. The authors found out that the negligible impact noted on the rates of employment was a result of the effects of minimum wage. To be more precise, Huang, Loungani & Wang (2014) indicated that firms that were low-wage oriented (less profitable) opted to cut down their rates of employment due to the increasing the minimum wage. On the other hand, firms that were high-wage oriented (more profitable) were hiring more personnel following a hike in minimum wage.
The small variation indicates the significant effect that hiking wages have on different firms. In other words, this article provides the information that coincides with the model of monopolistic organizations and labor (elastic) supply, which takes, firms’ wages up hence leading to an opportunity for the firms to hire more labor to meet the increasing demands. As such, the author notes that increasing minimum wages are key I improving organizational performance hence increasing the rates of employment in the society.
Mayneris, F., Poncet, S., & Zhang, T. (2014). The cleansing effect of minimum wage Minimum wage rules, firm dynamics and aggregate productivity in China (No. 2014-16). CEPII working paper. Retrieved from http://www.cepii.fr/PDF_PUB/wp/2014/wp2014-16.pdf.
The article by Mayneris, Poncet, & Zhang (2014), wrote this article to show that one of the ways that developing nations can increase reduce the issue of low income in the society is by increasing the minimum wages. The authors also indicate that developing nations can implement policies that would guarantee high wages for low-income earners without necessarily harming her economy. Mayneris, Poncet, & Zhang (2014) used China as their case. Notably, in 2004 the country revised its minimum wage policies to ensure that the income among low-wage earners is increased. In the article, the authors discussed the consequences of the move to increase the minimum wages throughout the country in many aspects. Some of the aspects include the survival of firms, employment rates as well as profitability.
At the firm level, the article indicated that increasing the wages of employees was favorable to firms which were reaping good revenues from the market but unfavorable to firms that were generating low wages from their activities in the market. As a result, profitable firms hired more labor as opposed to their non-profitable counterparts. This indicated that the survival rates of the low-wage firms were low compared to that of high-wage firms. On the other hand, the low-wage firms were unable to maintain their labor compared to the high-wage firms. Furthermore, Mayneris, Poncet, & Zhang (2014) indicated that increasing the minimum wages improved the productivity of the task force hence the efficiency of the firm improves significantly. The authors noted that this is a cleansing process that sees incompetent or rather unproductive firms being wiped out and more productive firms coming into operation. The article, therefore, states that China needs to increase its minimum wages to ensure that firms operate efficiently in order to ensure that the country achieves productivity as well as the welfare of the employees.
Neumark, D. (2001). The employment effects of minimum wages: Evidence from a prespecified research design the employment effects of minimum wages. Industrial Relations: A Journal of Economy and Society , 40 (1), 121-144. Retrieved from http://wol.iza.org/articles/employment-effects-of-minimum-wages-1.pdf.
In this article, Neumark (2001) argues that increasing the minimum wages is not the effective ways of improving the economy of the poor and the families that earn a little money from their jobs. The article states that, although increasing the minimum wage would be integral in improving the welfare of the poor, there is no evidence that supports such actions. Neumark (2001) asserts that increasing the minimum wages will demoralize the employers from using a task force that has little skills and thus require low wages. This is an implication that the firm will be discouraged to utilize a labor force that would need little wages to maintain. The article states that there are a lot of evidence suggesting that increasing minimum wages lead to a reduction in employment among individuals who need low wages owing to their little expertise.
On the other hand, Neumark (2001) indicates that increasing minimum wages are bad since it is targeting poor individual or rather individuals from families that earn a little income. The authors argue that the minimum wage policies advocate that low-wage employees ought to earn higher wages instead of striving to ensure that individuals from families that earn little income get higher earnings. Neumark (2001) suggest that families that earn little income need to be supported in order to overcome poverty.
Furthermore, the article states that a lot of research has been conducted in the U.S have failed to show that minimum wages can reduce poverty. In that regards, this article perceives that minimum wage is not an effective way of ensuring that individuals from families that earn little wages are helped. Neumark (2001) states that in order to address the issue of poverty and low income, their governments or firms need to devise more effective policies that would directly resolve the matter.
Digital Divide
Cullen, R. (2001). Addressing the digital divide. Online information review , 25 (5), 311-320. Retrieved from http://files.eric.ed.gov/fulltext/ED459714.pdf.
The article by Cullen, (2001), starts by defining the term digital divide. The article defines digital divide as a gap that prevails in many nations between individuals who have the access to the internet and those individuals who do not have the access to the tools of information and technology. As such, the people who can access the internet can gain more knowledge or rather information through the internet as opposed to their counterparts. The authors indicate that there are a couple of factors which might lead to this gap. These factors include geographical, generational, physical impairment, educational or through socio-economical issues (Cullen, 2001).
The article also indicates the gap between the developed and developing nations is another reason that significantly affects the uptake of technology. Cullen, (2001) examined the issues that cause a digital divide in the U.S, Canada, U.K, and New Zealand and attempted to provide a number of strategies that would be deployed to reduce digital split. Further, the article showed how relevant such strategies were in reducing the digital gap that is international oriented plus the relevance of such strategies to developing countries. One of the strategies it proposes is the utilization of libraries to curb the digital divide at both the national and international realm.
Bansode, S. Y., & Patil, S. K. (2011). Bridging digital divide in India: Some initiatives. Asia Pacific Journal of Library and Information Science , 1 (1), 58-68. Retrieved from https://www.researchgate.net/profile/Suresh_Patil7/publication/236141535_Bridging_Digital_Divide_in_India_Some_Initiatives/links/0c9605164fd8629048000000.pdf.
The article by Bansode & Patil, (2011) defines digital divide as the gap that exist between individuals who can access IT facilities with ease and those who cannot. The article also indicates that the gap can take two forms. First, it can be the lack of physical access to IT tools or second lack of the skills and resources that would allow an individual to make maximum use of IT facilities. Notably, the article discusses some factors that can contribute to the increase of this gap. Among the factors that have been discussed in this article which leads to the digital divide, include physical disability, lack of IT skills, gender, age, as well as inability to retrieve the content. Nevertheless, this article indicates that digital split can be overcome if digital libraries are embraced particularly in developing nations. Bansode & Patil (2011) discussed how India is bridging the digital gap by setting up digital libraries.
Fourie, I., & Bothma, T. (2006). Addressing the digital divide in teaching information retrieval: a theoretical view on taking students from ICT access to knowledge sharing. The Electronic Library , 24 (4), 469-489. Retrieved from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.108.4087&rep=rep1&type=pdf
This article by Fourie& Bothma (2006) indicated that the issues of the digital split are mainly caused by failure to access IT tool and lack of the necessary skills to retrieve information. As such, when trying to reduce the gap, individuals need to be provided with the vital information that would help in retrieving information. Fourie& Bothma (2006) suggests that a two-dimensional pyramid model that would see individuals gaining the necessary skills gradually.
The model proposes that the targeted beneficiaries (students) ought to be involved during the process. Besides, the society also needs to be involved based on the recommendations provided in the model developed by Fourie& Bothma (2006). In addition, the article states that there needs to be an increased understanding of the factors that increases the gap. This would require an improved mechanism for monitoring such factors like the ability to access IT facilities, skills, as well as self-efficacy. Fourie& Bothma (2006) perceive that through individual commitment, teamwork as well as intellectual support from learning institutions, people would be brought together to generate knowledge and improve communication which would lead to a reduction in the digital divide.
Avgerou, C., & Madon, S. (2005). Information society and the digital divide problem in developing countries. In Perspectives and policies on ICT in society (pp. 205-217). New Mexico: Springer. Retrieved from http://eprints.lse.ac.uk/2576/1/Information_society_and_the_digital_divide_problem_in_developing_countries_(LSERO).pdf.
In this article, Avgerou & Madon (2005) indicate that most global institutions that participate in the dissemination of IT in developing nations are not well equipped. As a result, the ICT’s initiated in the societies are not meaningful. The article indicates that despite the fact that the deployment of ICT is twined to economic growth in the world’s global market, there is little information to support its appropriateness locally. For instance, the use of ICT in imparting knowledge as well as how it interacts with the various intermediaries at the societal level is still not well understood by societal members.
Therefore, the article states that the vision of IT in the society is confined to a few individuals who understand the merit that it offers. As a result, this group of individuals strives to gain the necessary skills and attitude to ensure that they maximize the benefits that ICT offers them. In that regards, the article suggests that there is the need for all members of the society to be informed about the appropriateness of ICT in order to narrow the gap that exists between the urban dwellers and rural inhabitants in relation to the adoption of ICT. Importantly, the article indicates that there is the need to initiate policies that would cultivate meaningful information to the society that would align ICT vision together with societal goals.
Acılar, A. (2011). Exploring the aspects of digital divide in a developing country. Issues in Informing Science and Information Technology , 8 , 231-244. http://iisit.org/Vol8/IISITv8p231-244Acilar248.pdf
This article states that ICT has formed an important part in developing nations. Acılar (2011) notes that ICT is an important tool on matters pertaining to the creation of employment opportunities, economic growth, as well as increasing democracy in most developing nations. However, the article shows that many developing countries such as Turkey are not able to explore the benefits that ICT offers. In this article, the variation seen in terms of exploitation of ICT resources between the developed and underdeveloped nations is what the author refers to it as the digital divide. Like other articles, this article shows that the gap is caused by age and income. Acılar (2011) indicates that understanding factors that cause the gap is integral when addressing the matter. Importantly, the article suggests that the governments in developing nations such as Turkey have a responsibility towards in ensuring that this gap is narrowed. The article recommends that the government of Turkey should invest more on ICT infrastructures, particularly in major towns.
Conclusion
The issue of minimum wage is very controversial. Some perceive that it is the best tool for preventing poverty and inequality while others perceive that it increases the rates of unemployment. However, minimum wage aims at protecting the employee from exploitation by the employer that may result in extremely low pay. As such, it aims at ensuring an equitable and fair share of the fruits of success to all. On the other hand, the issue of the digital split is a societal problem currently. Nevertheless, many scholars suggest that digital divide can be addressed by ensuring that the beneficiaries are provided with the necessary IT structures and skills that would enable them to enjoy the maximum benefits of that the internet offers.
References
Acılar, A. (2011). Exploring the aspects of digital divide in a developing country. Issues in Informing Science and Information Technology , 8 , 231-244. http://iisit.org/Vol8/IISITv8p231-244Acilar248.pdf
Avgerou, C., & Madon, S. (2005). Information society and the digital divide problem in developing countries. In Perspectives and policies on ICT in society (pp. 205-217). Springer US. Retrieved from http://eprints.lse.ac.uk/2576/1/Information_society_and_the_digital_divide_problem_in_developing_countries_(LSERO).pdf
Bansode, S. Y., & Patil, S. K. (2011). Bridging digital divide in India: Some initiatives. Asia Pacific Journal of Library and Information Science , 1 (1), 58-68. Retrieved from https://www.researchgate.net/profile/Suresh_Patil7/publication/236141535_Bridging_Digital_Divide_in_India_Some_Initiatives/links/0c9605164fd8629048000000.pdf
Cullen, R. (2001). Addressing the digital divide. Online information review , 25 (5), 311-320. Retrieved from http://files.eric.ed.gov/fulltext/ED459714.pdf
Fourie, I., & Bothma, T. (2006). Addressing the digital divide in teaching information retrieval: a theoretical view on taking students from ICT access to knowledge sharing. The Electronic Library , 24 (4), 469-489. Retrieved from http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.108.4087&rep=rep1&type=pdf
Huang, Y., Loungani, P., & Wang, G. (2014). Minimum wages and firm employment: Evidence from China. Working Paper No. 173 . Retrieved from https://www.dallasfed.org/assets/documents/institute/wpapers/2014/0173.pdf.
Krisberg, K. (2015). Raising minimum wage good for public health, not just wallets: advocates call for federal increase. The Nation's Health , 45 (2), 1-12. Retrieved from http://thenationshealth.aphapublications.org/content/45/2/1.1.full
Mayneris, F., Poncet, S., & Zhang, T. (2014). The cleansing effect of minimum wage Minimum wage rules, firm dynamics and aggregate productivity in China (No. 2014-16). CEPII working paper. Retrieved from http://www.cepii.fr/PDF_PUB/wp/2014/wp2014-16.pdf
Neumark, D. (2001). The employment effects of minimum wages: Evidence from a prespecified research design the employment effects of minimum wages. Industrial Relations: A Journal of Economy and Society , 40 (1), 121-144. Retrieved from http://wol.iza.org/articles/employment-effects-of-minimum-wages-1.pdf
Schmitt, J. (2013). Why does the minimum wage have no discernible effect on employment? Center for Economic and Policy Research , 22 , 1-28. Retrieved from http://cepr.net/documents/publications/min-wage-2013-02.pdf
