Minimum-wage workers live on the edge

cnn.com     Jul 25, 2008            

6.55 per hour not enough for rent, food, transportation Majority of low-wage workers labor in hospitality industry Economist: 'Echo effect' will boost pay for those just above minimum too Low-wage workers often have health risks, economist says By Jason Hanna and Jim Kavanagh CNN ATLANTA, Georgia (CNN) -- Timothy Davis, a 21-year-old who makes just above the minimum wage, chose to live on his own three months ago. He almost immediately regretted it. Until Thursday -- when the federal minimum wage rose from $5.85 to $6.55 -- he was earning $6.15 hourly for 35 to 40 hours a week at a Wendy's restaurant in Atlanta, Georgia. He said each paycheck, coming every other week, amounted to about $380 after taxes. The month's first paycheck went exclusively to bills, food and his $551 rent. Nearly all of the second went to the same.... [read full story]                    


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