The real reason Walmart raised its minimum wage: [Essay Example], 535 words GradesFixer

Haven't found the right essay?

Get an expert to write your essay!


Professional writers and researchers


Sources and citation are provided


3 hour delivery

This essay has been submitted by a student. This is not an example of the work written by professional essay writers.

The Real Reason Walmart Raised Its Minimum Wage

Download Print

Pssst… we can write an original essay just for you.

Any subject. Any type of essay.

We’ll even meet a 3-hour deadline.

Get your price

121 writers online

Download PDF

But did the new law actually make a difference? Would Walmart have still increased worker pay and approved bonuses without the tax decrease?

Walmart has already been raising wages, and began doing so well before the corporate tax cut passed. It first did so in a well-publicized move in early 2015, when it raised its minimum wage to $9 an hour. In 2016, it followed up with another increase to $10. The current increase simply continues a trend it started three years ago.

Second, there are very good reasons for Walmart to increase benefits—even absent the tax cut—because of the labor market circumstances it faces. With the nation’s unemployment rate now at nearly 4%, labor markets around the country have grown tight, and at least some employers feel wage increases are necessary to attract and retain their best workers. Indeed, many economists like me wish more employers were doing so, and wonder if our low national productivity growth prevents this from happening more frequently.

Third, as many states and cities around the country raise their minimum wage requirements above the federal level (stuck at $7.25 since 2009), companies like Walmart are sometimes forced to raise their own pay, especially if they want to stay enough above the legal minimum to distinguish themselves from other low-wage retail and fast-food establishments.

But there is an even deeper reason the company is doing this. Over the past several years, Walmart has been taking a number of steps to leave behind its reputation as a low-wage employer. It has raised pay and benefits and engaged in more on-the-job worker training than in the past. The Walmart Foundation has been closely involved in these efforts, and has encouraged other retail employers to do the same in order to collectively raise the reputation of the entire sector.

Why would Walmart or any other employer choose to raise its costs? Very simply, Walmart is doing so because it has come to believe this is good for its bottom line. Economists have long argued that even within a narrow industry and region, employers have choices over their labor market strategies, and how to best compete. Some choose a “low road” strategy, competing on the basis of the lowest labor costs possible, and tolerating the resulting high turnover and weak worker performance. Others choose a “high road” strategy, investing in the skills and performance of their workers, and lowering worker turnover in the process.

Very simply, Walmart is choosing to take the “high road” in its human resources policies. Tired of its reputation as a bad employer, and of the low-performing employees it was attracting, the company chose instead to raise pay and train more, betting that this approach would improve the firm’s performance and profits over time. My impression is that Walmart executives believe this strategy is working, and will continue to implement it while encouraging other retail employers to do the same.

There are many logical, market-based reasons for Walmart and other employers to raise worker pay and performance; they didn’t need a large corporate tax cut to do so. The enormous fiscal costs and obscenely unequal benefits created by the new tax bill are clearly not justified by any gains it will bring to workers—at least for now.

Remember: This is just a sample from a fellow student.

Your time is important. Let us write you an essay from scratch

100% plagiarism free

Sources and citations are provided

Find Free Essays

We provide you with original essay samples, perfect formatting and styling

Cite this Essay

To export a reference to this article please select a referencing style below:

GradesFixer. (2019). The real reason Walmart raised its minimum wage. Retrived from
GradesFixer. "The real reason Walmart raised its minimum wage." GradesFixer, 11 Feb. 2019,
GradesFixer, 2019. The real reason Walmart raised its minimum wage. [online] Available at: <> [Accessed 24 September 2020].
GradesFixer. The real reason Walmart raised its minimum wage [Internet]. GradesFixer; 2019 [cited 2019 February 11]. Available from:
copy to clipboard

Sorry, copying is not allowed on our website. If you’d like this or any other sample, we’ll happily email it to you.

    By clicking “Send”, you agree to our Terms of service and Privacy statement. We will occasionally send you account related emails.


    Attention! this essay is not unique. You can get 100% plagiarism FREE essay in 30sec

    Recieve 100% plagiarism-Free paper just for 4.99$ on email
    get unique paper
    *Public papers are open and may contain not unique content
    download public sample

    Sorry, we cannot unicalize this essay. You can order Unique paper and our professionals Rewrite it for you



    Your essay sample has been sent.

    Want us to write one just for you? We can custom edit this essay into an original, 100% plagiarism free essay.

    thanks-icon Order now

    Hi there!

    Are you interested in getting a customized paper?

    Check it out!
    Having trouble finding the perfect essay? We’ve got you covered. Hire a writer uses cookies. By continuing we’ll assume you board with our cookie policy.