Tag Archives: Labor Market

Dear NFL cheerleaders: Don’t sue your teams over low wages

Though the NFL season’s kickoff is still three months away, controversy already plagues the league. Most recently, NFL cheerleaders made the headlines with lawsuits over their low wages.

On Jan. 31, a former San Francisco 49ers cheerleader filed a class action suit against the NFL and 26 of its teams on behalf of all cheerleaders employed by the NFL for the past four years seeking $100 million to $300 million in damages. This cheerleader, called “Kelsey K.,” alleged that the NFL and member teams conspired to artificially suppress the wages of cheerleaders through collusion.

A federal judge dismissed this claim on May 26 at the request of the NFL and its member teams because he believed that the complaint did not present any evidence of collusion or antitrust behavior. Yet, because this lawsuit was just the latest in a string of allegations against the NFL of underpaying cheerleaders, it is important to make it clear that basic economics — not illegal collusion — is why cheerleaders choose to work for such low pay…

Read the rest at: The Washington Examiner

European Millennials Are Locked Out of the Job Market

At the 8th annual European Students For Liberty Conference, held in Prague, Czech Republic, I asked students which policies make it more difficult for them to succeed in their home countries. Though I heard a diverse array of answers, one response repeatedly came up. They told me that inflexible labor markets are the main way many European governments decrease economic opportunity for their youngest residents. This inflexibility leads to high youth unemployment and leaves young people with a disproportionate share of temporary work.

The students’ complaints centered on their inability to secure long-term employment. Labor laws across the European Union do not recognize the U.S. concept of employment at-will. In the United States, if they are not discriminating, companies can fire workers for no reason at all. But employment contracts in Europe are indefinite unless the contracts are specifically set for a short period of time.

Read the rest on Economics 21, here.

States Raising Minimum Wages Should Remember the Young

On New Year’s Day fourteen states raised their minimum wages, with increases ranging from small adjustments for inflation to major hikes of 10 percent or more. Minimum wages do more harm than good, and they particularly hurt the young.

Teenagers and individuals in their early twenties often lack the skills that make them valuable to employers. Therefore, they must learn these skills on the job while not producing much for the businesses who hire them. When states (or the federal government) set high minimum wages, hiring unskilled young people will not make financial sense for most employers.

The youth (ages 16 to 24) labor force participation rate currently stands at 55 percent, down from 66 percent in 1994. While there are many reasons for this decline, the role of minimum wages cannot be ignored.

Read the rest on Economics 21 here.

Study: Right-to-work does not lower wages

Labor union activists often push back against right-to-work laws with the quip, “Right-to-work for less.” Their claim that right-to-work lowers wages has made many state legislators hesitant to vote for the anti-union laws. But new research from the conservative Heritage Foundation counters the claim that right-to-work decreases wages.

Right-to-work laws prohibit an employer from forcing employees to join a union or pay union dues.

“When living costs are fully taken into account, private-sector workers in RTW states enjoy real wages equivalent to those in non-RTW states,” Heritage Research Fellow James Sherk writes in an issue brief published Tuesday. “Policymakers considering RTW legislation may do so confident that it will have no negative impact on private-sector wages.”

A surface-level analysis may make it seem as if right-to-work leads to lower wages. States with right-to-work laws do have lower wages than non-right-to-work states, but right-to-work states also have lower costs of living. Virginia is the only right-to-work state with a higher cost of living than the national average.

Read the full article at the Washington Examiner.

Advocates Rasmus and Fred Published in Denmark’s Leading Business Newspaper

Young Voices Advocate Rasmus Brygger (Denmark) and Director Fred Roeder (Germany) have been published in today’s Børsen writing about how the deregulation of the German labor market helped millions of jobless people to obtain employment.

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The entire article can be found here (in Danish and for subscribers of Børsen only). Børsen is Denmark’s leading business newspaper, has a circulation of 59,752 daily copies and reaches about 180,000 readers.

If you’d like to speak with or book Rasmus or any of our other Advocates, please contact Young Voices now.