레이블이 Average College Graduate Loan Debt인 게시물을 표시합니다. 모든 게시물 표시
레이블이 Average College Graduate Loan Debt인 게시물을 표시합니다. 모든 게시물 표시

2013년 12월 3일 화요일

About 'average debt of college students'|Trends in College Tuition vs. Bachelor’s Degree Wages; Interesting Demographics of Student Loan Debt History







About 'average debt of college students'|Trends in College Tuition vs. Bachelor’s Degree Wages; Interesting Demographics of Student Loan Debt History








One               of               the               most               important               aspects               to               financial               security               involves               maintaining               an               appropriate               credit               score.

For               many               college               students,               credit               cards               have               become               a               way               to               extend               not               only               the               finances               associated               with               daily               living               but               also               a               method               in               which               to               maintain               entertainment,               often               to               an               extreme.

With               many               college               students               obtaining               student               loans,               it               is               crucial               to               avoid               surmounting               credit               card               debt               as               this               will               only               lead               to               a               double               whammy               once               college               life               is               over.

Teaching               children,               especially               during               high               school,               the               concept               of               credit               scoring               will               work               to               ensure               more               educated               financial               decisions               are               made               in               college.

Credit               scores,               known               as               FICO               scores,               are               scoring               mechanisms               provided               by               the               three               major,               national               credit               bureaus.

While               each               credit               bureau               will               provide               a               difference               FICO               credit               score,               the               average               of               these               scores               is               a               good               indicator               of               the               credit               worthiness               of               a               college               student.

While               many               college               students               rarely               have               established               credit               scores               by               the               time               they               reach               college,               credit               card               companies               will               commonly               prey               upon               the               student's               lack               of               knowledge               resulting               in               the               student               carrying               a               large               credit               card               debt.

As               a               parent,               educating               the               student               in               FICO               scoring               is               crucial               to               making               wise               investment               and               financial               decisions.
               The               first               lesson               in               FICO               credit               scoring,               in               teaching               students,               is               the               timing               of               scores.

With               the               three               credit               bureaus               providing               varying               scores               the               one               item               they               do               have               in               common               is               the               need               to               establish               at               least               six               months               of               credit               history               before               the               FICO               credit               score               is               established.

As               credit               scores               are               crucial               to               the               independence               of               the               college               student,               obtaining               one               credit               card,               with               a               low               dollar               limit,               will               provide               the               college               student               with               an               opportunity               to               establish               credit               and               create               a               FICO               credit               score.

However,               ensuring               the               college               student               only               used               the               card               for               necessities               will               be               challenging.
               When               establishing               a               credit               card,               working               to               keep               balances               low               is               key               to               obtaining               a               higher               FICO               credit               score.

Teach               your               college               student               to               use               the               credit               card               lightly               so               as               to               ensure               the               credit               limit               to               credit               balance               ratio               remains               low.

As               a               general               rule,               the               card               balance               should               never               exceed               30               percent               of               the               allowed               credit               limit.
               In               addition               to               maintaining               a               low               credit               balance,               college               students               should               be               strongly               urged               to               limit               the               credit               cards               to               one.

Carrying               multiple               cards               is               not               a               recommended               financial               avenue               as               the               three               major               credit               bureaus               do               not               boost               FICO               credit               scores               when               unnecessary               credit               cards               are               obtained.
               As               with               any               financial               investment               tool,               credit               cards               can               provide               a               key               life               lesson               to               the               college               student.

While               avoiding               credit               cards,               at               all               cost,               is               not               recommended,               the               use               of               credit               cards               should               be               strictly               limited               while               attending               college.

Rather               than               use               credit               cards               as               a               means               for               paying               for               living               expenses,               encourage               your               college               student               to               obtain               a               low               limit               card               strictly               for               the               purpose               of               creating               and               boosting               a               FICO               credit               score.

In               doing               so,               your               college               student               will               graduate               from               college               with               a               degree               as               well               as               a               great               beginning               to               a               stable               financial               future.






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    2013년 11월 30일 토요일

    About 'college debt average'|Average College Debt Rose to $24,000 in 2009







    About 'college debt average'|Average College Debt Rose to $24,000 in 2009








                   College               tuition               fee               is               rising               everywhere,               and               in               fact;               it               has               been               rising               at               much               greater               rate               than               any               other               items.

    For               many               families,               sending               children               to               universities               mean               a               huge               financial               burden               for               the               family,               and               for               those               taking               up               student               loans,               they               will               find               themselves               heavily               indebted               before               they               even               find               their               first               job.
                   This               unfortunately,               will               become               worse               in               years               to               come,               many               are               suggesting               that               university               fees               could               rise               to               average               $40,000               to               $50,000               each               year               easily,               and               if               you               adding               cost               of               accommodation               and               other               costs,               they               can               go               up               to               $100,000.
                   This               is               becoming               a               crisis               that               many               parents               are               thinking               to               give               up               on               their               retirement               money               as               they               have               choice
                   The               only               way               is               to               plan               way               ahead               and               start               making               savings               as               early               as               possible               to               avoid               the               future               financial               burden.
                   1.

    College               Fund               is               a               very               good               idea
                   The               concept               of               college               fund               is               well               understood               in               North               America               and               certain               parts               of               Europe.

    Some               governments               even               put               in               incentives               to               co-invest               into               your               education               funds.

    The               concept               is               very               similar               to               your               retirement               fund;               most               people               use               mutual               funds               as               a               way               to               put               regular               savings               into               college               fund.
                   One               thing               to               remember               is,               college               fund               is               a               very               long               term               investment,               usually               10               to               15               years;               you               need               a               balanced               approach               --               it               is               a               good               idea               to               mix               them               with               stable               and               more               aggressive               investments;               and               not               entirely               on               cash               or               stable               investments               as               you               do               need               to               beat               the               inflation               as               college               tuition               fees               do               rise               above               inflation               rate.
                   2.

    One               share               a               year               makes               a               lot               of               difference
                   Buying               one               share               for               your               children               at               their               birthday               or               Christmas.

    I               read               a               story               where               a               grandmother               used               to               buy               one               share               a               year               for               her               birthday,               over               14               years,               she               had               accumulated               wealth               of               $7,000;               however,               she               had               sold               her               shares               every               year               in               exchange               for               cash,               had               she               kept               them,               it               would               worth               $44,000,               enough               for               her               to               pay               off               her               college.
                   There               are               many               companies               now               offering               this               kind               of               service,               and               you               can               choose               a               variety               of               the               companies               to               invest               --               they               will               also               send               you               a               share               certificate,               so               it               is               a               perfect               way               to               teach               your               kids               money-sense               at               same               time.
                   3.

    Open               High               Interest               Kids               Accounts
                   Some               Australian               banks               offer               excellent               interest               rates               for               kids               bank               accounts.

    The               best               available               at               moment               is               10%,               although               there               are               many               restrictions               that               they               can               not               earn               over               $400               a               year               or               they               will               be               taxed               at               very               high               margin               rate.
                   Still,               saving               $400               a               year               means               you               can               save               $4,000               over               10               years               simply               by               parking               your               money               there               doing               nothing.

    To               make               this               work               more               effectively,               is               to               link               the               accounts               to               your               online               high               interest               savings               account               which               are               paying               around               6%               per               annum               at               moment,               so               you               can               accumulate               interest               both               ways.
                   4.

    Buy               Index               Funds               Regularly
                   Index               funds               are               very               suitable               tools               for               savings               as               they               are               highly               diversified               by               its               nature.

    Index               funds               perform               almost               exactly               to               the               sharemarket               index,               and               as               the               result,               it               is               low-cost,               low-maintenance               funds               to               invest,               the               low-cost               feature               makes               a               lot               of               difference               over               a               long               term.

    Index               funds               are               also               easy               to               invest,               you               do               not               need               to               worry               about               picking               the               fund               manager               or               the               portfolio.
                   5.

    Research               into               different               types               of               scholarships
                   Scholarships               are               available               at               various               universities,               more               so               for               universities               in               USA,               Europe               and               also               some               parts               of               Asia.

    While               it               is               not               as               common               in               Australia,               there               is               still               a               funding               available.
                   The               system               works               quite               differently               in               US               and               Europe;               scholarships               are               funded               by               Government,               large               corporations,               alumni               and               foundations.

    For               example,               Bill               Gates,               Al               Gore,               Steve               Jobs               all               have               their               foundations               providing               funding               for               scholarships               for               their               universities.
                   Scholarships               come               in               different               ways:               1)               Academic               2)               Sports               Achievements               3)               Music,               Arts,               talent               4)               Innovations               and               5)               High               achievers               which               is               subject               to               judgment               by               the               foundations               and               universities.
                   6.

    ETF               Funds
                   I               use               a               lot               of               ETF               Funds               for               my               children's               college               funds;               I               like               them               for               3               reasons:               1)               Easy               to               invest,               as               they               are               just               like               shares,               2)               Liquidity,               I               can               buy               and               sell               them               within               20               seconds               unlike               the               mutual               funds               and               3)               Choice,               there               is               a               wide               range               of               choice               of               ETFs               to               choose               from,               which               I               can               build               them               up               over               time.
                   7.

    High               Dividend               Stocks
                   For               long               term               savings,               dividends               will               have               a               more               influential               role.

    As               I               had               illustrated               before,               imagine               a               portfolio               that               generates               4%               dividend               yield               a               year               on               average               and               grows               a               modest               5%               a               year,               that               equates               to               9%               return               a               year               already,               plus               many               companies               also               increase               their               dividend               by               around               5%               to               10%               each               year,               and               this               can               make               a               lot               of               difference               after               10               years.
                   8.

    Save               all               your               pocket               money
                   Most               families               have               a               lot               of               coins               and               changes               sitting               around.

    We               did               a               study               in               2010               and               found               that               on               average,               there               will               be               around               $100               changes               sitting               in               the               household               at               any               given               time.

    This               is               a               complete               waste               of               money               and               opportunity               as               you               can               use               them               and               earn               interest               or               invest               them               into               mutual               funds.

    We               started               our               first               college               fund               like               this               way               and               simply               deposit               our               changes               at               the               end               of               each               month,               this               has               grown               to               $1,600               already               just               after               7               months.
                   9.

    Considering               studying               abroad
                   Why               staying               in               Australia?

    There               is               no               reason               why               your               kids               should               study               in               Australia.

    There               are               many               countries               in               the               world               which               actually               offer               university               at               much               more               affordable               tuition               fee.

    Many               European               universities               are               actually               free               apart               from               registration               fees;               some               universities               in               Asia               are               also               relatively               cheap               to               attend               --               look               at               different               choices               and               you               maybe               surprised.
                   10.

    Discipline               is               everything
                   As               you               can               see,               mutual               funds,               dividend               paying               companies,               index               funds               --               these               are               really               just               the               tools.

    The               most               important               thing               is               discipline,               and               the               best               way               to               achieve               that               is               "Forced               Saving".
                   Every               family               has               ups               and               downs               every               month,               but               this               should               not               disrupt               your               savings               plans.

    A               good               way               is               to               set               up               direct               payment               to               the               funds               each               month,               so               that               you               allocate               certain               amount               of               funds               from               your               bank               account.
                   I               have               seen               many               of               my               friends               now               in               the               mid-30s               and               still               need               to               pay               off               their               college               debt,               it               also               caused               subsequent               consequences               such               as               delaying               their               ability               to               buy               their               first               home.

    Debt               is               a               real               problem               faced               by               this               generation               and               you               can               imagine               it               will               be               an               even               worse               problem               for               the               next               generation.
                   Do               whatever               you               can               for               your               children               to               save               for               their               college,               even               $5000               can               make               a               lot               of               difference               for               their               future.






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    1. crystalfairweather.wordpress.com/   10/21/2010
      [not surprised.] College seniors who graduated in 2009 had an average of $24,000 in student loan debt, up 6 percent from 2008, according...
    2. rexmartinez.wordpress.com/   12/02/2009
      ... an honor roll of sorts: 28 "low debt" colleges and universities whose average graduates are less than $10,000 in the...
    3. my-wealth-builder.blogspot.com/   08/09/2007
      ..., potential aid and average student loan debt at these colleges. I was pleasantly ...925 $22,126 $21,687 28 Bentley College (Mass.) 4,294 $41,300 $24,545...
    4. studentlendinganalytics.typepad.com/   04/15/2009
      ... to 4.6, and half of college students had...credit card balances. The average (mean) balance grew to... conducted. Median debt grew from 2004’s $946...
    5. warlords2010.blogspot.com/   04/21/2013
      ... in the class of 2011 who borrowed in college graduated with an average of $26,600 in loan debt, up from $25,250 the year before.
    6. studentlendinganalytics.typepad.com/   10/15/2008
      ...over the Class of 2006. Average debt for the class of 2007 was $18,482 at public colleges Average debt for the class of 2007 was $23,065 at private colleges The report ...
    7. findingcollege.blogspot.com/   02/22/2007
      ... to the College Board report linked to above, for 2003-04 college graduates, the average debt students incur is $19,300. According to the report...
    8. rougeknights.blogspot.com/   11/01/2007
      ...Australia (2007) $40 billion (AUD) [3] Credit card debt is said to be ... countries. The average U.S. college graduate begins his or her post...
    9. dandelionsalad.wordpress.com/   05/01/2012
      ...average debt load of a Canadian university graduate in 2009 was $26,680, and the average debt for college graduates was $13,600. These figures, it should be...
    10. inchoaterandomabstractions.blogspot.com/   06/12/2006
      ... get quick education about debt .' The average graduate who borrowed for college leaves school with almost... with pretty much zero debt because what the scholarship and...
    11. College Debt Average - Blog Homepage Results

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    2013년 11월 28일 목요일

    About 'avg college debt'|[Cities To Use Eminent Domain To Seize Mortgage Loans , Failing to Break Up the Big Banks is Destroying America, Sheila Bair: Why Isn’t Anything Fixed on Wall St , Sheila Bair: Keeping...







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    Solving               Honduras               Poverty               through               Minimum               Wage               The               paper               ought               to               examine               the               different               perspective               and               effects               concerning               the               reduction               of               poverty               with               the               aid               of               the               legislative               policy               tool               of               controlling               vis-à-vis               increasing               the               minimum               wage.

    As               can               be               extracted               from               the               trends               of               economics               along               with               the               various               experiences               that               the               global               economy               has               been               experiencing,               the               legislation               concerning               minimum               wage               affects               the               relocation               of               income               to               workers               who               only               receive               low               wages.
                   This               policy               tool               can               help               in               assuring               workers               to               receive               a               higher               minimum               wage               which               would               obviously               create               or               result               to               higher               family               income               to               these               workers.

    This               policy               have               been               utilize               and               devised               mainly               to               help               the               third               world               countries               to               compete               in               the               Global               market.
                   On               the               other               hand,               there               have               been               proposals               and               issues               in               Central               America,               regarding               this               matter.

    There               are               even               suggestions               to               further               reduce               the               minimum               wage               or               even               eliminate               it               if               possible               in               order               to               provide               a               more               competitive               and               flexible               market.
                   This               paper               would               look               at               this               argument               and               apply               it               in               the               complex               situation               of               Honduras               economy               where               in               self               employed               individuals               and               those               who               are               considered               as               civil               servants               are               not               affected               by               minimum               wage               changes.
                   The               difference               between               the               minimum               wage               in               Honduras               and               in               first               world               economies               such               as               the               United               States               and               countries               in               Europe               would               also               be               discussed.

    The               presentation               of               available               data's               concerning               the               differences               in               minimum               wages               in               these               countries               shall               bring               fort               other               factors               which               affects               the               consequences               of               setting               minimum               wages               in               different               countries.
                   The               paper               would               further               discuss               the               difference               between               countries               economies               in               order               to               create               a               better               view               on               the               relation               of               globalization               and               global               competition               to               the               wages               and               labor               conditions               of               countries,               focusing               on               its               relative               effects               in               Honduras               and               the               United               States.

    The               paper               would               also               have               a               reflection               on               the               studies               made               by               Gindling               and               Terrell               (2007)               showing               that               minimum               wage               legislation               has               not               reduce               the               poverty               level               in               Honduras.

    The               discussions               in               this               paper               shall               be               related               to               the               theoretical               models,               surveys               and               data's               that               have               been               collected               as               of               June               2007.
                   The               Minimum               Wage:               The               New               Deal               Strategy
                   There               have               been               several               ongoing               debates               concerning               the               utility               of               the               legislation               of               minimum               wage.

    Those               who               believe               that               minimum               wage               would               reduce               poverty               argued               that,               the               regulation               would               only               be               effective               and               would               only               concern               those               who               are               in               the               formal               sectors,               thus,               it               does               not               or               it               is               not               meant               to               guarantee               any               positive               impact               on               the               people               who               are               working               in               the               informal               sector.
                   Those               who               argue               against               minimum               wage               believe               that               the               close               competition               that               exists               today               in               the               global               market               would               require               governments               to               create               an               attractive               business               milieu               for               investors               as               much               as               possible.

    This               would               mean               that               most               government,               especially               those               who               are               considered               as               "developing               countries"               would               impose               lower               minimum               wages               or               would               even               consider               its               abolition.

    (Lee,               2002)
                   Briefly,               the               minimum               wage               is               a               legislated               law               that               controls               the               minimum               amount               of               payment               that               a               worker               shall               receive               for               his/her               performance.

    Minimum               wage               legislation               are               created               in               order               to               protect               the               low-wage               workers               from               possible               exploitation,               since               these               workers               are               usually               unskilled               laborers               and               mostly               uneducated               or               have               little               education.
                   Upon               insuring               that               these               workers               would               be               guaranteed               with               a               minimum               wage,               poverty               would               also               be               alleviated               or               avoided.

    In               setting               minimum               wage,               the               person's               daily               living               standards               and               the               purchasing               power               are               computed,               to               ensure               that               it               would               be               economically               beneficial               and               fair               for               the               workers.
                   The               development               of               minimum               wage               laws               started               in               most               first               world               countries,               such               as               New               Zealand               and               Great               Britain.

    In               United               States,               it               started               on               1937               when               it               was               proposed               by               President               Roosevelt               as               a               legislative               tool               that               shall               reduce               or               eliminate               any               possible               exploitation               of               the               economic               class               who               has               been               defenseless               since               they               are               in               an               unequal               position               with               the               higher               class.
                   The               law               aims               to               protect               the               health               and               well-being               of               the               working               class.

    This               was               popularly               known               as               the               "New               Deal               Strategy"               which               shall               remedy               the               effects               of               the               Great               Depression.

    The               approved               minimum               wage               during               those               times               was               $.25               per               hour.

    (essay               from               client)
                   Yet               the               opponents               of               this               law               appeal               that               minimum               wage               would               definitely               heightens               the               poverty               that               are               being               experience               especially               by               the               low-wage               workers.

    As               more               and               more               of               this               workers               are               laid               off               from               their               jobs               because               companies               are               taking               cost-cutting               measures               to               answer               the               increase               in               minimum               wages.
                   Factors               affecting               Change               in               Minimum               Wage
                   First               thing               that               shall               be               considered               in               applying               minimum               wage               is               the               person/s               that               would               be               affected               by               such               changes.

    The               labor               market               must               be               considered               since               more               competitive               markets               tend               to               create               higher               unemployment               rate.
                   The               demand               for               labor               would               determine               the               amount               of               person               that               shall               be               displaced               with               respect               to               the               implementation               of               minimum               wage               increase               or               decrease.
                   The               effect               of               minimum               wage               changes               on               the               workers               which               are               not               covered               with               minimum               wage               shall               also               be               considered.

    Since               those               who               lose               the               job               in               the               minimum               wage               covered               sector               would               produce               an               increase               in               the               available               supply               of               labor               in               the               sector               that               was               not               covered               such               as               those               who               are               self-employed.
                   The               third               factor               concerns               the               worker's               family               income.

    Since               the               minimum               wage               is               meant               to               reduce               poverty,               its               effects               must               reduce               poverty.

    However,               the               low-wage               workers               which               are               affected               by               the               minimum               wage               might               not               belong               to               families               in               the               poverty               line               or               the               low-income               families.
                   Thus,               if               this               is               the               case,               increasing               the               minimum               wage,               might               only               increase               the               gap               between               the               low-income               families               and               the               middle-class               families.
                   Lastly,               is               the               level               of               the               per-capita               poverty               line,               which               reflects               the               society's               view               about               what               the               minimum               wage               shall               cover?

    In               some               society,               minimum               wage               is               used               in               relation               to               the               worker's               personal               basic               needs               while               some               societies               consider               the               worker's               family's               basic               needs.
                   In               this               case,               the               number               of               family               members               and               bread-winners               of               a               family               are               also               essential               to               know               or               to               compute               for               the               basic               living               standards               in               a               given               society.
                   Effects               of               Minimum               Wage
                   Minimum               wage               has               different               effects               on               different               families               and               states.

    It               simply               depends               upon               the               household               and               the               way               that               the               family               responds               to               the               changing               Labor               market               and               requirements.

    The               family               might               benefit               in               the               minimum               wage               increase               especially               when               there               are               two               or               more               minimum               wage               earners               in               the               family               and               they               all               receive               the               wage               increase.
                   However               if               one               or               two               of               the               family               earners               would               lose               job               due               to               cost               cutting               of               businesses,               then               the               family               might               as               well               fall               to               poverty.

    There               would               be               more               family               expenses               with               less               family               income.
                   The               minimum               wage               also               has               varying               effects               on               women               and               indigenous               workers               which               are               very               susceptible               from               lay               offs.
                   Thus,               there               cannot               be               a               clear               effect               of               minimum               wage.

    In               order               to               know               the               general               trend               that               an               increase               or               a               decrease               in               minimum               wage               produce,               data's               must               be               collected               and               family               income               surveys               must               be               taken.

    This               shall               accurately               display               the               public's               reaction               to               the               wage               changes.
                   Problems               with               Minimum               Wage
                   The               statements               above               briefly               explains               how               minimum               wage               is               devised               and               designed               in               order               to               answer               the               problems               in               poverty,               however,               its               opponents               have               obviously               lay               down               the               possible               problems               that               might               happen               if               minimum               wage               would               be               set               and               impose.
                   According               to               Freeman               (as               quoted               in               Gindling               and               Terrell,               2007),               the               ultimate               objective               or               purpose               of               setting               minimum               wage               is               not               to               decrease               the               number               of               employment,               it               is               to               create               a               better               allocation               of               income               to               the               low               wage               workers.

    However               the               study               that               was               made               in               the               United               States               and               United               Kingdom               denotes               that               the               low               is               in               fact               not               useful               in               promoting               and               increasing               employment.
                   In               this               case,               the               minimum               wage               shall               be               effective               in               increasing               the               earnings               of               workers               who               are               low-paid.

    Nonetheless,               the               situation               would               not               be               the               same               given               the               fact               that               the               current               market               is               very               competitive,               as               what               the               process               of               globalization               have               brought               forward.
                   As               stated               above,               the               cost               cutting               procedure               that               happens               due               to               an               increase               of               minimum               wage               results               to               some               workers               who               are               usually               in               the               bottom               of               the               production               or               working               ladder               to               lose               their               jobs               at               the               expense               of               the               retention               of               others               with               higher               wages.
                   Richard               Berman               presented               the               argument               that               it               is               in               fact               very               easy               to               see               that               in               the               imposition               of               the               minimum               wage,               the               government               can               order               the               employers               the               amount               that               some               shall               receive,               however,               the               government               does               not               have               a               say               on               who               are               the               person               that               the               employers               shall               hire.
                   This               situation               forces               the               employer               or               the               business               sectors               to               lay               off               the               less               productive               workers,               not               to               hire               unskilled               and               less               educated               workers               and               hire               only               those               with               enough               qualification               suited               for               the               wage.
                   What               drastic               effect               does               this               situation               bring               about               is               quite               complicated.

    First,               there               would               be               fewer               jobs               available               in               the               business               arena.

    Less               opportunities               for               the               jobless               brings               an               increase               in               the               unemployment               rate               which               is               equivalent               to               less               family               income               for               the               unemployed               and               poverty               for               the               society               in               the               long-run.
                   Second,               this               would               yield               to               businessmen               choosing               more               qualified               individuals.

    More               qualified               individuals               are               skilled               workers;               skilled               workers               on               the               other               hand               are               more               or               less               educated               workers               or               otherwise               experienced               ones.

    Educated               workers               are               usually               newly               graduates               or               at               least               the               young               generation.

    This               shall               leave               the               adults               unskilled               workers               not               preferable               for               jobs               which               are               considered               as               low               wage               jobs.
                   If               this               is               so,               they               would               not               have               chance               to               work               or               would               have               a               very               small               probability               to               be               accepted               in               jobs               which               are               under               the               minimum               wage               law.

    It               is               either               they               settle               with               underpaid               jobs               or               not               to               work               at               all.

    If               that               will               be               the               case               then               poverty               shall               increase,               since               this               people               would               have               higher               expenses               and               less               income               than               what               is               needed               to               live               substantially.
                   Third,               since               businesses               need               to               pay               higher               for               the               cost               of               labor,               they               would               pass               the               expenses               to               the               consumer               which               means               that               there               would               be               higher               prices               in               commodities               and               services.

    Also,               this               sometimes               results               to               lower               quality               in               products               or               services,               depending               in               how               the               employers               and               employees               would               react.
                   This               is               because               employees               might               need               to               work               for               longer               hours               or               might               be               subjected               to               heavier               or               more               task               in               a               poorer               working               environment.
                   The               Living               Wage               Law               versus               State               Pre-emption               Law
                   In               1994,               Baltimore               has               enacted               the               "living-wage               law"               which               helps               to               increase               the               local               wages               often               higher               than               the               minimum               wage.

    However,               the               state               pre-emption               law               manages               to               block               the               effects               of               the               living-wage               law               by               preventing               any               local               governments               from               setting               the               wage               requirements               in               their               state.
                   This               was               organized               by               the               American               Legislative               Exchange               Council               who               believes               that               the               living-wage               is               very               expensive               and               costly               especially               in               cases               wherein               there               are               only               few               workers               who               meet               the               requirements.

    Both               the               living-wage               and               the               state-pre-emption               laws               are               effective               ordinances               that               give               the               citizens               the               power               to               control               their               respective               states               minimum               wages               depending               on               the               labor               market.
                   Minimum               Wage               and               Poverty               in               the               United               States
                   According               to               Gindling               and               Terrell               (2007),               in               the               study               made               by               Blackburn               and               Addison               in               1999               they               have               found               out               that               the               increase               in               minimum               wage               have               help               minimize               the               poverty               level               of               junior               high               school               dropouts               and               teenagers,               from               1983               to               1996.
                   In               the               study               made               by               Neumark               and               Wascher               in               2002,               through               the               use               of               US               CPS               data,               shows               that               an               increase               in               the               minimum               wage               both               have               a               positive               effect               on               the               probability               of               families               to               fall               into               poverty               and               to               escape               poverty.

    This               shows               that               there               is               a               redistribution               of               income               among               the               poor.
                   Minimum               Wage               and               Poverty               in               Latin               America
                   The               research               made               by               Gindling               and               Terrell               also               shows               that               the               countries               in               Latin               America               usually               associates               higher               minimum               wage               with               a               decrease               in               poverty               however               it               is               considered               to               have               a               positive               relationship               with               the               unemployment               rate,               thus               it               is               believed               not               to               be               an               effective               legislation               and               strategy               to               reduce               poverty.
                   In               the               data               used               by               Sagat               in               2001,               he               concludes               that               the               people               in               the               poverty               line               are               not               much               affected               by               an               increase               in               the               minimum               wage               and               that               it               is               those               who               are               in               the               upper               levels               which               are               greatly               affected.

    The               results               of               studies               that               uses               micro-data,               shows               that               increasing               minimum               wage               has               no               actual               and               significant               effect               on               the               level               of               poverty               even               when               the               effects               of               unemployment               are               taken               into               consideration.
                   In               another               study               that               was               also               mentioned               in               Gindling               and               Terrell's               research,               Arango               and               Pachon               have               managed               to               prove               that               in               Columbia,               minimum               wages               helps               in               the               improvement               of               the               living               condition               of               the               families               with               high-income.
                   The               possibility               of               being               employed,               the               range               and               hours               of               worked               of               women               and               less               educated               workers               are               affected               negatively.

    However,               in               the               study               made               in               Mexico               by               Cunningham               and               Siga               in               2006,               they               found               that               those               who               are               under               the               poverty               line               are               most               likely               to               benefit               from               the               increase               in               minimum               wage.
                   The               World               Bank               believes               that               the               results               of               these               studies               differ               with               respect               to               the               level               of               minimum               wages               in               the               respective               areas.

    Accordingly,               Columbia               has               higher               minimum               wage               than               Mexico.
                   The               probability               to               be               employed               along               with               the               changes               in               the               number               of               working               hours               was               also               explored               in               the               studies               mentioned               above.

    The               Arango               and               PAchon               study               in               2004,               found               that               there               is               a               reduction               in               the               probability               of               household               heads               to               be               employed               when               minimum               wage               was               increased.

    Irrespective               of               this,               the               probability               of               non-heads               being               employed               increase.
                   The               studies               provide               evidences               that               show               that               there               is               a               negative               relationship               between               poverty               and               increase               in               minimum               wage,               especially               on               the               country               level               data's.

    Micro-level               data               on               the               other               hand               provides               a               view               regarding               the               family               structure               and               household               responses               to               the               increase               in               minimum               wage.
                   Honduras:               In               Focus
                   Honduras               is               a               country               in               Central               America               which               is               considered               as               a               developing               country.

    It               has               a               struggling               economy,               with               an               annual               Gross               Domestic               Product               of               US$2,900               as               of               2006.

    Its               great               majority               is               composed               of               the               poor               with               the               distribution               of               income               controlled               by               a               few.

    The               wage               is               very               low,               with               only               $160               per               month.

    Most               of               the               people               are               dependent               on               the               remittances               that               come               from               the               illegal               immigrants               that               go               in               the               United               States.

    Most               people               in               Honduras               works               in               the               textile               industry               earning               the               minimum               wage,               under               poor               conditions.
                   It               is               said               that               about               two-thirds               of               the               people               living               in               Honduras               are               living               in               poverty               according               to               state.gov.

    3.2%               of               its               GDP               is               attributed               to               Services,               18%               on               the               Manufacturing               industry               and               the               remaining               14%               to               agriculture.
                   The               Working               Condition               in               Honduras
                   The               management               in               Honduras               are               said               to               impose               overtime               work               to               their               employees.

    Refusing               this               policy               would               result               to               three               days               no               pay               suspension.

    Practically,               it               would               be               very               difficult               if               not               impossible               to               refuse               doing               overtime               work.

    Because               of               this               situation               mothers               are               forced               to               live               their               children               to               their               relatives.

    If               one               would               refuse               or               would               not               be               able               to               attend               overtime,               the               person               would               be               under               an               eight               day,               no               pay,               suspension.
                   The               factories               in               Honduras               also               have               poor               working               condition               and               poor               ventilation               systems.

    In               one               factory,               there               is               even               no               available               pure               drinking               water.

    There               are               even               incidents               of               maltreatments.
                   Although               the               law               permits               workers               to               create               unions               and               rally,               there               are               reports               that               indicate               employers               harassing               union               sympathizers.

    There               are               even               numerous               appeals               in               the               Honduras               labor               courts               concerning               being               fired               from               work               because               of               joining               the               union.
                   Forced               labor               is               also               not               permitted,               but               as               stated               above,               it               was               popularly               done               in               most               factories.

    Children               are               also               permitted               to               work               even               without               parental               consent.

    The               violation               of               Child               Labor               act               is               frequent               in               rural               communities.

    There               are               approximately               350,000               child               workers               in               Honduras.
                   There               are               several               increases               in               the               minimum               wage               of               Honduras,               currently;               the               minimum               wage               is               set               at               US$2.12               a               day               for               those               working               in               the               agricultural               sector               while               the               highest               would               be               US$               3.47               per               day.
                   Workers               shall               only               work               for               only               44               hours               per               week,               must               have               10               days               paid               vacation               per               years               however               this               were               disregarded               by               most               employees               and               workers               are               not               given               a               chance               to               complain               because               of               the               high               demand               for               job.

    (National               Economies               Encyclopedia)
                   The               scenario               above               shows               that               the               laws               in               Honduras               are               not               properly               being               implemented.

    This               indicates               that               the               working               condition               and               environment               in               Honduras               is               indeed               very               low.

    This               might               be               a               good               environment               for               investors               but               it               definitely               degrades               the               welfare               of               the               workers.
                   However,               it               seems               that               there               are               not               much               foreign               investors               who               are               interested               in               the               country.

    This               might               be               rooted               from               the               inability               of               the               government               to               implement               laws               which               make               the               economy               shaky               and               make               the               investors               scared               to               spend               or               put               up               their               investment.
                   Minimum               wage               and               Honduras
                   In               the               research               conducted               by               Gindling               and               Terrell,               they               have               found               out               that               ever               since               Honduras               had               legislated               minimum               wage               laws,               they               have               been               able               to               set               up               to               about               22               minimum               wages.

    The               minimum               wage               was               being               change               on               the               rate               of               twice               every               year.
                   The               minimum               wage               that               applies               to               bigger               firms               is               about               27%               higher               than               those               that               belong               to               the               much               smaller               firms.

    However               the               rapidity               of               increase               in               smaller               firms               is               3%               faster               or               greater               than               those               of               the               larger               ones.
                   In               the               data's               gathered               by               the               PHSMP,               otherwise               known               as               the               Permanent               Household               Surveys               for               Multiple               Purposes               plotted               in               a               graph               that               was               use               by               Gindling               and               Terrell,               it               shows               that               Honduras               has               been               stable               as               of               1999.
                   However,               it               remains               to               be               a               poor               country,               being               the               fourth               of               the               poorest               Central               American               countries.

    From               the               same               data's               provided               by               the               PHMSP               about               44%               of               the               labor               force               of               Honduras               is               considered               to               belong               in               the               "extremely"               poor               line.

    This               means               that               they               don't               even               meet               the               1,               200               calories               per               day               requirement               for               standard               living.

    63%               of               the               labor               population               is               considered               as               poor,               meaning               only               about               37%               of               the               working               class               is               considered               to               belong               above               the               poverty               line.
                   According               to               the               data's,               46%               of               those               who               works               in               small               firms               belongs               to               extreme               poverty               while               51%               of               the               self-employed               individuals               also               belong               to               the               extreme               poverty               line.

    The               unskilled               workers               amount               to               49%               or               almost               two-thirds               of               the               labor               force.

    50%               of               the               workers               are               young               individuals               with               age               ranging               from               fifteen               to               twenty-one.

    62%               came               from               the               rural               areas.
                   Discussion               of               the               relationship               of               Poverty               and               Minimum               wage               in               Honduras
                   As               far               as               the               data's               reflect,               the               constant               raise               of               minimum               wage               I               Honduras               does               not               affect               the               person               which               belongs               in               the               poverty               line.

    Instead               of               solving               poverty,               the               raise               in               minimum               wage               is               seen               to               have               a               relative               relationship               with               poverty               in               the               case               of               Honduras.
                   The               difference               between               the               minimum               wage               set               in               the               United               States               and               in               Honduras               lies               on               the               fact               that               those               who               earn               the               minimum               wage               in               the               United               States               belongs               to               those               people               who               are               in               the               poverty               line               while               those               who               earn               the               minimum               wage               in               Honduras               mostly               belongs               to               the               middle               class.
                   Also,               the               number               of               family               members               must               also               be               considered.

    While               in               United               States,               the               usual               number               of               family               members               is               four               to               five,               in               Honduras               it               is               about               6               to               8.

    This               greatly               affects               the               amount               of               standard               living               difference               between               Honduras               and               the               United               States.
                   Minimum               Wage               versus               Distribution               of               Wages
                   In               the               study               made               by               Gindling               and               Terrell               in               2006,               they               have               found               out               that               an               increase               in               the               minimum               wage               would               result               to               an               increase               in               the               average               wage               of               the               large               firms.

    However,               an               increase               in               minimum               wage               also               increases               in               the               laying               off               or               cost               cutting               process.
                   The               study               proves               that               when               the               company               reduces               the               number               of               employees,               the               workers               becomes               either               unemployed               or               would               work               in               small               firm               business.

    Such               evidences               suggest               that               increasing               the               legal               minimum               wage               is               tantamount               to               an               increase               in               the               employment               in               smaller               firms.
                   If               such               would               be               the               case,               there               would               be               more               workers               who               are               willing               to               work               for               smaller               wages,               since               smaller               firms               is               not               included               in               the               minimum               wage               law.

    Thus,               there               is               a               possibility               that               the               wages               would               be               reduced               in               the               smaller               firms,               making               a               lot               more               workers               work               for               low               wages               that               later               on               creates               more               poverty.
                   Possibility               of               Increasing               Minimum               Wage               in               Honduras
                   The               possibility               of               increasing               the               amount               of               minimum               wage               in               Honduras               remains               very               low,               with               most               people               working               below               the               poverty               line.

    This               only               means               that               the               workers               who               would               receive               the               increase               in               minimum               wage               are               only               a               small               portion               of               the               working               force.
                   With               the               possibility               of               employment               reduction               upon               the               implementation               of               the               said               increase,               there               would               be               a               lot               more               people               who               would               be               cut               out               of               job               in               the               near               future.

    The               working               conditions               of               the               workers               are               not               any               better.

    It               means               that               most               of               the               workers               might               suffer               health               problems               due               to               long               hours               of               works               and               poor               working               environment.

    In               addition               to               this,               those               workers               who               would               be               left               behind               when               lay               offs               happen               would               need               to               work               longer               hours               or               would               be               task               to               do               more               jobs.
                   If               these               things               happen,               it               is               impossible               for               the               people               to               maintain               their               health.

    They               would               have               more               problems               and               more               expenses.

    Those               who               are               unemployed               would               either               risk               illegal               migration               or               settle               for               much               lower               paying               jobs               that               they               could               find.
                   Children               would               also               be               forced               to               work               and               possibly               drop               out               of               school,               increasing               the               number               of               unskilled               and               less               educated               people               and               future               workers.

    Children               are               force               to               accept               low               wages               since               they               are               not               in               any               position               to               complain,               after               all               what               they               are               doing               is               illegal               and               their               minds               are               set               to               follow               the               instruction               of               higher               ups               especially               older               people.
                   It               is               possible               to               increase               minimum               wage               even               presented               with               all               this               risk               and               loop               holes               after               all,               minimum               wages               in               Honduras               have               been               open               to               changes               on               about               22               times               already.

    Raising               the               minimum               wage               of               about               5-10%               would               not               have               a               great               impact               as               the               data's               above               presented.

    When               it               will               be               higher               than               this               it               would               be               detrimental               in               the               economy               as               a               whole.
                   Benefits               of               Increasing               the               Minimum               Wage               in               Honduras
                   The               main               benefit               that               an               increase               in               minimum               wage               in               Honduras               can               be               the               affect               that               it               has               on               skilled               and               educated               workers.

    Most               of               these               people               belong               to               the               middle               class               workers               or               those               people               who               are               earning               above               the               poverty               line.

    It               would               benefit               directly               their               net               family               income.

    It               would               increase               the               possibility               that               they               could               have               greater               savings               and               for               them               to               create               their               own               businesses.
                   In               the               consideration               of               the               current               state               of               Honduras,               there               would               probably               less               people               who               would               received               the               increase               in               minimum               wage               that               will               still               be               willing               to               risk               illegal               immigration.

    Thus,               an               increase               in               minimum               wage               can               contribute               to               a               decrease               in               the               number               of               illegal               immigrants,               since               what               they               could               possibly               earn               in               another               country               is               also               almost               equivalent               to               the               amount               that               they               would               receive               in               Honduras,               minus               the               risk.
                   Increasing               the               minimum               wage               would               also               inspire               people               to               finish               their               studies               to               be               able               to               qualify               for               jobs               or               employment               which               offers               minimum               wage.

    It               would               also               be               beneficial               for               skilled               workers               and               newly               graduate               employees               since               they               could               earn               more               than               when               they               do               not               graduate               or               if               they               do               not               have               enough               qualifications               as               that               of               college               drop               outs.
                   Necessity               and               Relevance               of               Increasing               the               Minimum               Wage               in               Honduras
                   In               the               current               working               condition               of               the               laborers               in               Honduras               it               is               justified               to               increase               their               wages.

    These               workers               have               been               experiencing               force               labor               and               are               subjected               to               poor               working               environment               which               might               be               hazardous               to               their               health.
                   It               is               necessary               for               the               government               to               increase               the               minimum               wage               to               be               able               to               protect               the               workers               from               the               alienation               that               the               working               conditions               in               Honduras               working               places               could               make.
                   In               general,               increasing               minimum               wage               is               relevant               in               giving               the               workers               proper               payment               for               their               works.

    With               regards               to               poverty,               increasing               the               minimum               wage               is               relevant               to               be               able               to               get               skilled               and               educated               families               out               of               poverty,               especially               since               getting               proper               skills               and               education               have               require               great               sacrifice               from               their               families.
                   Remittances               and               Poverty               in               Honduras
                   The               Red               de               Desarrollo               Sostenible(RDS)               have               pioneered               a               project               in               Olancho,               Honduras               to               take               note               of               the               impact               of               the               remittances               from               foreign               investment.

    According               to               RDS,               in               2004,               there               are               nearly               700,000               workers               who               live               outside               of               the               country               to               work.
                   This               group               of               workers               have               been               able               to               send               remittances               to               the               family               members               they               have               left               in               the               country               amounting               to               more               or               less               $1               billion.

    It               is               now               considered               to               be               the               greatest               source               of               income               and               investment.

    It               provides               more               income               than               tourism.

    Thus,               immigration               and               working               outside               of               the               country               have               been               a               popular               strategy               for               the               Hondurans               to               alleviate               poverty.
                   The               organization               believes               that               enhancing               the               remittances               would               be               a               better               tool               in               alleviating               poverty               than               raising               the               minimum               wage,               since               it               would               not               affect               the               labor               market               while               increasing               income               for               the               families               left               behind.
                   Legislation               for               Foreign               Investments               in               Honduras
                   There               are               no               special               legislations               that               are               given               to               foreign               investors               in               Honduras,               actually,               foreign               and               local               investors               enjoy               the               same               benefits               and               incentives.

    The               foreign               and               local               investors               both               have               to               pay               more               or               less               eight               municipal               taxes,               three               agency               taxes               and               thirty               one               central               government               taxes.

    There               are               no               time               limits               for               foreign               investors,               they               could               continue               to               operate               as               long               as               their               company               remains               duly               recognize,               that               is,               when               the               company               is               registered               and               pay               proper               taxes.
                   Honduras               Foreign               Debts               and               Disaster               Mitch
                   Honduras               had               an               approximately               $4.5               billion               foreign               debt               as               of               1996.

    90%               of               this               debt               amounts               to               the               long               term               debt,               87%               of               which               are               public               debt.

    Honduras               annually               pays               more               or               less               $564               million               in               1996.
                   The               Hurricane               Mitch               which               destroys               most               of               the               agricultural               production               of               Honduras               in               October               1998,               have               left               the               country               with               no               choice               but               to               cancel               or               suspend               debt               servicing               to               foreign               debts               in               able               to               cope               up               with               the               destruction               by               rebuilding               its               economy,               roads               and               infrastructure               that               was               severely               damaged               by               Mitch.
                   This               destruction               has               left               people               with               no               choice               but               to               migrate               to               other               countries               in               able               to               at               least               live.

    Thus,               illegal               migration               has               been               a               central               problem               after               the               hurricane.

    Most               of               the               people               from               Honduras               have               fled               to               the               United               States               illegally.
                   Legal               Actions               by               United               States
                   In               order               to               counter               the               flow               of               illegal               immigrants               in               the               United               States,               they               devised               Acts               and               Regulations               that               restrict               individuals               coming               from               Central               America.

    There               have               been               increased               in               qualification               and               ineligibility               to               people               from               the               Central               America               to               enter               the               United               States               for               three               up               to               ten               years               if               they               are               found               guilty               of               entering               United               States               borders               illegally.
                   Honduras               and               Migration
                   There               is               a               natural               tendency               for               people               to               migrate               from               one               land               to               another               in               cases               that               the               previous               land               was               not               abundant               of               resources               to               satisfy               the               person's               basic               needs.

    This               human               instinct               was               what               can               be               observed               from               the               phenomena               that               hit               most               Central               American               countries               in               1998.
                   Most               of               the               family               members               decide               to               go               outside               of               their               countries               for               faith               of               having               better               fortunes               somewhere               else.

    There               is               nothing               wrong               with               this               so               far,               unless               of               course               things               are               done               illegally.
                   At               the               height               of               the               Mitch               disaster,               human               trafficking               from               the               Central               America               to               United               States               has               been               so               popular.

    People               are               moving               out,               not               minding               how               they               could               get               out               of               the               poverty-stricken               situation               that               they               have               been               experiencing.
                   Although               there               are               laws               that               forbid               human               trafficking,               the               enforcement               of               laws               in               Honduras               was               not               strictly               implemented               as               can               be               seen               in               the               previous               discussions.

    This               has               created               more               problems               in               United               States.
                   Honduras               has               started               to               get               positive               impact               in               this               kind               of               solution.

    As               discussed,               remittances               have               continued               to               become               a               great               part               of               Honduras               Gross               Domestic               Product               up               until               today.

    It               has               affected               the               national               economy               and               gives               the               labor               market               a               boost.
                   There               are               about               40%               of               the               households               who               lives               under               the               poverty               line               which               receives               remittances.

    How               ever,               there               is               a               problem               that               most               people               in               Central               America               have               been               experiencing               concerning               money               transfer.
                   According               to               Sica               and               Avina               (1999),               the               rate               of               money               transfer               to               Central               America               is               about               20%               of               the               total               amount               to               be               sent.
                   Minimum               Wage               versus               Remittances
                   As               the               discussion               progress,               it               can               be               gathered               that               Minimum               Wage               is               a               very               problematic               and               risky               legislative               tool               to               take               with               respect               to               the               reduction               of               poverty.

    Although               it               is               possible               to               increase               the               minimum               wage               and               it               has               some               benefits,               still               the               problems               that               it               can               present               generally               outweighs               its               necessity.
                   Thus,               as               natural               as               changes               in               ecological               niche               and               survival               instincts,               people               from               Central               America               specifically               in               Honduras               have               resorted               to               migration               and               human               trafficking.

    It               was               one               of               the               most               popular               ways               of               escaping               the               poverty               in               Honduras.
                   While               it               does               help               people               to               earn               a               fortune               and               it               have               helped               the               economy               prosper,               still,               there               are               issues               concerning               migration               that               could               deeply               affect               the               economic               relationship               of               Honduras               with               other               countries               especially               the               United               States.
                   This               is               the               case               since               the               United               States               have               been               making               it               more               difficult               for               legal               migrants               to               enter               their               borders               and               legal               migration               cost               more               and               more.
                   The               earnings               from               foreign               remittances               have               been               the               main               source               of               income               in               Honduras.

    Mainly,               remittances               help               alleviate               poverty               and               increase               the               net               family               income               without               doing               damage               to               the               workers               and               without               disrupting               the               labor               sector.
                   Conclusion               and               Reccomendation
                   Since               people               receive               more               income               through               remittances,               it               would               be               very               beneficial               if               the               government               of               Honduras               would               pay               attention               on               increasing               the               foreign               remittances               of               the               country.
                   This               could               be               done               through               long-term               plans               and               with               coordination               to               other               country's               business               sectors               and               government.
                   First,               the               government               must               try               to               improve               and               promote               quality               education               for               those               who               aspire               to               have               high-paying               jobs               and               to               work               abroad.

    In               line               with               this,               the               government               must               identify               what               are               kind               of               workers               are               needed               by               other               countries.
                   For               instance,               nurses,               care               givers               and               house               maids               are               in               demand               in               most               European               and               Middle               Eastern               countries.
                   Second,               the               government               must               offer               short               term               courses               which               would               increase               and               develop               the               skills               of               its               workers.

    For               instance               offering               seminars               and               short               courses               on               air               conditioning               repair,               mechanical               and               electronic               repairs               which               would               help               unemployed               workers               find               jobs.
                   Third,               the               people               must               in               their               own               way               help               themselves               out               of               poverty.

    Provided               that               the               people               in               the               country               are               willing               to               work               in               poor               working               condition,               they               must               organize               themselves               to               fight               the               cruelties               and               repression               that               they               receive               from               their               employers.

    In               line               with               this,               the               government               must               help               the               workers               meet               the               legally               due               environment               and               system               that               they               deserve.
                   Fourth,               the               government               must               employ               its               citizens               by               doing               road               projects               and               infrastructure               that               would               benefit               the               public               as               a               whole.

    Roads               are               the               most               important               way               to               connect               people               from               different               places               and               to               make               distribution               of               resources               easier,               faster               and               more               convenient.

    The               workers               in               this               case               should               be               given               minimum               wage;               this               would               help               fuel               the               economy               far               better.
                   The               workers               would               buy               more               if               they               have               more               income,               some               would               be               able               to               save               more               for               future               use.

    Industries               would               also               run               its               gears               since               there               would               be               more               demands               from               the               consumers.
                   The               government               would               also               benefit               from               more               taxes.

    More               government               money               can               be               use               to               further               improve               international               relations               and               could               be               use               to               increase               the               minimum               wage               of               the               public               sector.

    Increasing               the               minimum               wage               in               the               public               sector               will               help               boost               the               economy               since               the               workers               would               be               willing               to               work               in               government               agencies               and               projects.
                   Helping               the               economy               to               move               and               circulate               is               a               priority               that               the               government               must               take               in               able               to               reduce               poverty.

    Increasing               the               minimum               wage               would               not               affect               the               people               in               poverty               as               have               been               discussed.
                   Changes               in               wages               have               a               minimum               effect               on               the               level               of               poverty               that               the               country               have               been               experiencing,               thus               it               is               not               a               good               idea               to               increase               minimum               wages               in               Honduras.
                   The               minimum               wage               in               Honduras               better               stay               as               it               is               today.

    A               better               economic               tool               that               can               be               use               would               be               creating               public               projects               in               which               both               the               general               public               and               the               private               sectors               could               participate.

    Increasing               the               possibility               of               legal               means               of               migration               would               also               be               another               top               priority,               since               it               is               very               hard               for               a               country               like               Honduras               to               attract               foreign               investors.
                   If               the               minimum               wage               in               Honduras               shall               increase,               it               should               do               so               in               only               small               portion               so               as               not               to               affect               the               labor               market               structure.

    According               to               Gindling               and               Terrell,               in               the               span               of               2001-2004               the               minimum               wage               in               Honduras               rose               of               about               10.9%               with               the               extreme               poverty               falling               2%.

    However,               this               is               not               sufficient               evidence               that               the               reduction               of               poverty               is               due               to               the               increase               in               minimum               wage               but               rather               on               other               more               popular               ways               that               the               people               take               such               as               immigration               which               bring               forth               more               and               more               foreign               remittances.
                   Data's               gathered               by               Gindling               and               Terrell
                   Table               A.

    Monthly               changes               in               Minimum               wage
                   Sector
                   may_01
                   sept_01
                   May               _02
                   Sept_02
                   March_03
                   sept_03
                   May_04
                   Agriculture,               Hunting               and               Fishing
                   1-15               workers
                   34.6
                   33.73
                   35.25
                   32.83
                   36.82
                   35.85
                   37.91
                   16+               workers
                   48.62
                   47.39
                   49.47
                   46.08
                   50.3
                   48.97
                   50.45
                   Non-Metallic               Mining
                   60.55
                   59.02
                   61.03
                   56.85
                   61.97
                   60.34
                   62.16
                   Metallic               Mining
                   1-15               workers
                   36.33
                   35.41
                   38.72
                   36.07
                   40.44
                   44.06
                   41.65
                   16+               workers
                   50.35
                   49.07
                   52.71
                   49.1
                   53.46
                   56.74
                   55.89
                   Table               B.

    Impact               of               an               Increase               in               the               Minimum               Wage               on               the               Poor               and               the
                   Extremely               Poor               for               Sub-Groups               in               the               Labor               Force               in               Small               and               Large               Firms
                   Large               Firms               Small               Firms
                   Sample               Poor               Extremely               Poor               Poor               Extremely               Poor
                   Unskilled               -0.373***               -0.279***               0.612               0.263
                   0.1040.0730.5320.414
                   Skilled               -0.009               -0.001               0.76               0.456
                   0.1200.0960.5530.486
                   Non-head               -0.134*               -0.170***               0.511               0.108
                   0.0780.0540.4410.394
                   Head               -0.219***               -0.205***               0.468               0.058
                   0.0760.0590.4410.393
                   Rural               -0.512***               -0.381***               -0.068               -0.156
                   0.1340.0940.4270.351
                   Urban               -0.015               -0.063               0.592               0.189
                   0.0720.0490.4010.383
                   *significant               at               the               0.10               confidence               level
                   **significant               at               the               0.05               confidence               level
                   ***significant               at               the               0.01               confidence               level
                   Table               C:               Poverty               Rates               for               Different               types               of               Workers               in               Honduras               (avg.

    for               2001-2004)
                   Area               Extremely               Poor               Poor               Non-Poor               Share               of               Total
                   Covered               Large               19.0               24.7               56.2               20.3%
                   Covered               Small               46.4               19.9               33.7               36.3%
                   Self-employed               51.1               17.8               31.1               36.2%
                   Public               9.8               18.9               71.4               7.2%
                   The               data's               are               the               one               which               are               used               in               the               research               made               by               Gindling               and               Terrell.

    This               data's               relevance               can               be               reflected               on               the               paper.

    As               can               be               seen               in               Table               A,               there               have               constant               changes               in               minimum               wage               almost               every               four               t               six               months.

    The               impact               of               the               increase               in               minimum               wage               can               be               reflected               on               Table               B.

    It               demonstrates               how               an               increase               in               minimum               wage               can               possibly               affect               those               in               the               extreme               poverty               line               and               the               poor,               the               differences               of               impact               between               the               large               and               small               firms.
                   Works               Cited
                   Gindling,               T.H.

    and               Terrell,               K.

    (2006).

    Minimum               Wages,               Globalization               and               Poverty               in               Honduras.

    Retrieved               on               November               6,               2007.

    Retrieved               from               the               World               Wide               Web:               http://72.14.253.104/search?q=cache:-8yBOSewM04J:ftp.iza.org/dp2497.pdf+wage+increase+honduras+globalization&hl=tl&ct=clnk&cd=1&gl=ph
                   Gindling,               T.H.

    and               Terrell,               K.

    (2004).

    Minimum               Wages,               Inequality               and               Globalization               .

    Social               Science               Research               Network.

    Retrieved               on               November               8,               2007.

    Retrieved               from               the               World               Wide               Web:               http://papers.ssrn.com/sol3/papers.cfm?abstract_id=554061
                   Honduras.com.

    Country               of               Honduras.

    Retrieved               on               November9,               2007.

    Retrieved               from               the               World               Wide               Web:               http://honduras.com/
                   Jacobs,               E.

    (2007).

    Remittances               in               Retreat.

    Retrieved               on               November               8,               2007.

    Retrieved               from               the               World               Wide               Web:               http://www.newvisioninstitute.org/foresight/index.php/category/labor-markets-the-workplace/
                   Lee,               C.H.

    (2002).

    The               Minimum               Wage.

    Asian               Labour               Update.

    Retrieved               on               November               8,               2007.

    Retrieved               from               the               World               Wide               Web:               http://www.amrc.org.hk/4207.htm
                   Legislation               for               Foreign               Investment               Statutes               in               Countries               in               the               Americas.

    Comparative               Study:               HONDURAS.

    Retrieved               on               November               9,               2007.

    Retrieved               from               the               World               Wide               Web:               http://alca-ftaa.iadb.org/eng/invest/HND~1.HTM
                   Red               de               Desarrollo               Sostenible.

    (2005).

    Remittances               for               Development.

    Retrieved               on               November               8,               2007.

    Retrieved               from               the               World               Wide               Web:               http://72.14.253.104/search?q=cache:BCBu_hoJfBsJ:www.idrc.ca/uploads/user-S/11653500231Project_brief,_RDS_remittances,_Sept_2005.doc+foreign+remittances+Honduras&hl=tl&ct=clnk&cd=3&gl=ph
                   Latin               America               and               Caribbean               Center.

    Remittances               Programs.

    Florida               International               University.

    Retrieved               on               November               9,               2007.

    Retrieved               from               the               World               Wide               Web:               http://programaderemesas.org/brief/en/brief_eng.html
                   SICA,               I.

    and               AVINA,               H.

    (1999).

    Mitch,               Foreign               Debt,               Disasters,               Emigrants               And               Remittances               in               Central               America               .

    Retrieved               on               November               8,               2007.

    Retrieved               from               the               World               Wide               Web:               http://www.envio.org.ni/articulo/2232
                   U.S.

    Department               of               State.

    (2007).

    Background               Note:               Honduras.

    Bureau               of               Western               Hemisphere               Affairs.

    Retrieved               on               November               8,               2007.

    Retrieved               from               the               World               Wide               Web:               http://www.state.gov/r/pa/ei/bgn/1922.htm






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