Interesting piece on the convergence of minimum wage jobs and graduate positions
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Britain’s big squeeze: middle-class and minimum-wage
The strange politics of wage compressionwww.economist.com
Particularly interesting is that by virtue of the minimum wage rising so much, every single graduate will now start paying back their loan as soon as they start working full time, so will be hit with a hefty tax rate. I wonder if this will deter many from going to university if they can get the same money in Starbucks but minus the student loan?
I was talking to a friend about this recently, as both of his kids have recently graduated.
Both of them have gone into jobs, where the starting wage is slightly below the amount where the repayments would kick in.
He said that it appeared that this is what some employers were doing to attract young graduates.