Youth Rates: Why they work

There has been some talk about Youth Rates being reintroduced. Here‘s an article from 3 News about it. Currently, my Facebook feed is full of people saying how bad Youth Rates are. So let’s have a look at this.

Currently, even if you look on Student Job Search, most jobs say you need to have experience. And why wouldn’t you require that? Let’s look at a hypothetical situation. If the minimum wage was $10/hour, who would you hire? A young person with no experience, or a slightly older person who does have experience? Now let’s bring in a youth rate of $5/hour. Would you hire someone for $5/hour that has no experience, or hire someone for $10/hour who does have experience?

In the first hypothetical situation, the answer is clearly going to be the person with experience. However, in the second situation, it is questionable and depends on the company. Personally, if I were managing a business, I would go with the younger person.

The people against this are arguing that it’s not a livable wage. Well, quite frankly, so is $0. Which is more livable?


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Posted on June 17, 2011, in New Zealand Politics and tagged , . Bookmark the permalink. 1 Comment.


    Here’s a link to a press release by the New Zealand Council of Trade Unions on why we should not have Youth Rates. Can’t accuse me of being unfair to the opposition 🙂

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