Should Teen Workers Be Paid Less Than Adults?

Do you or an older sibling have a part-time job? Maybe you serve drinks at a coffee shop or tutor the kids down the street. In the U.S., teens as young as 16 are allowed to do many jobs.

But getting hired can be a major challenge. Young people today face the highest unemployment rate of all age groups in the country. The U.S. Bureau of Labor Statistics estimates that about 13 percent of teens ages 16 to 19 who are actively looking for work can’t find jobs.

Some people say the solution is to lower the minimum wage for teens, which could encourage businesses to hire them. That might allow more young people to gain work experience, helping them find higher-paying jobs in the future.

Last year, Massachusetts law­makers debated letting businesses pay teens 80 percent of the state’s regular minimum wage. That would have meant $9.60 an hour for teen workers, instead of $12. Arizona debated a similar bill to lower pay for teens. Both measures failed to pass.

Opponents of a lower minimum wage for teens say it’s unfair. They point out that young people often work just as hard as adults, so they shouldn’t be paid less simply because of their age. Plus, critics note, many teens with jobs rely on their wages to help support their families.

Is it fair to pay teens less than adults? Two experts weigh in.

You need experience to get hired, but unless you get hired, you can’t get experience. Many young people across the country face this dilemma. A lower minimum wage for teens would encourage businesses to hire them. That would give teens more opportunities to gain work experience and learn valuable life and career skills, such as showing up to work on time and being professional and reliable.

Federal law limits what teens can do while on the job. At grocery stores, for example, teens under 18 can bag goods but aren’t allowed to operate a box compactor. When young people can’t do parts of a job, employers have to hire someone else to do those tasks. If there are going to be legal restrictions on what teens can do, then it makes sense to pay them less.

Plus, your average teen doesn’t have the same kinds of skills that workers in, say, their 20s have. When employers have to pay everyone the same starting wage, it often makes more sense for them to hire older, more-skilled workers instead of teens.

A high youth unemployment rate is bad for society. Research shows that unemployed teens are more likely to drop out of high school and get caught up in the criminal justice system. Studies have also found that students with part-time jobs are more likely to earn higher wages in the future compared with their classmates who don’t have jobs.

I appreciate the fact that some teens need to work to help support their families. But to do that, they need to land jobs in the first place.

The bottom line is that lowering the minimum wage for teens makes it easier for them to find jobs. And helping all Americans find work will ultimately help improve our nation’s economy.

—Bob Battles
General Counsel & Government Affairs Director,
Association of Washington (State) Business

Why should workers get paid less simply because they happen to be teenagers? If a teen is performing the same tasks as a 20-year-old, he or she should earn the same amount of money.

Many teens have to work to help support their families. Others live on their own or are trying to save money for college. In recent years, the cost of higher education has skyrocketed. According to the College Board, average annual tuition and fees at four-year public colleges and universities have more than doubled in the past 20 years. If teens are forced to accept lower wages, it will be even harder for them to afford a degree. And research shows that people who graduate from college typically go on to earn higher wages.

Young people aren’t the only ones who would be affected by a lower teen wage. If employers find it cheaper to hire teens, older workers might get passed over for jobs.

A lot of pay inequality already exists in the U.S. For example, the Census Bureau estimates that women earn about 82 cents for every dollar a man makes. We shouldn’t pass laws that reinforce wage discrimination—especially when there’s little evidence to suggest that businesses would create new jobs for teens if they could pay them less than adults.

Not to mention, the U.S. economy depends heavily on consumer spending, and teens spend billions of dollars every year. If young people earn less money, they won’t spend as much. That’s bad for the economy.

Every hardworking American deserves to receive fair compensation, and that includes teens. After all, isn’t paying people an honest wage for honest work a fundamental American value?

—Marilyn P. Watkins
Policy Director, Economic Opportunity Institute