Give Now

Delays, Closings and Severe Weather - View All Alerts and Updates

Purdue University Will Not Follow IU And Raise Minimum Wage

Students and other people who work in dining and landscape services tend to be those that make minimum wage at universities.

Purdue University has no plans to raise the minimum wage for its university employees. The announcement follows Indiana University’s recent decision to increase its pay rates to $8.25 per hour.

Effective July 1, IU’s wage increase puts the university one dollar above the federal minimum wage. IU President Michael A. McRobbie said in a statement that the pay increase is much-deserved, and it’s one way to recognize employees’ important contributions to the success of the university.

But Purdue University President Mitch Daniels said in a statement that changing pay rates might take jobs away from employees at Purdue.

“We are working to expand job prospects and we want to be mindful not to do something that would limit the number of students to whom we could offer opportunities,” Daniels said.

Purdue University assistant economics professor Timothy Bond says both of the universities make decisions based on their best interests, and Purdue would, indeed, have a hard time finding a way to finance the increase.

“If you are going to raise the wages here at Purdue, you have to decrease the number of employees that we have here,” he says. “Looking at it from the community perspective, Purdue is the major employer in the area. From that perspective, he’d be concerned about the loss of jobs counteracting the gains in pay to employees that retain their jobs.”

Indiana University economics professor Gerhard Glomm also warns raising the minimum wage could cause people at the higher end of the pay scale to demand higher wages.

“I think it could be a fairly serious issue to ask how do the workers who have a bachelor’s degree who work for IU at roughly $12 an hour, how do they feel about how their effort to get a college degree is rewarded relative to the people at the bottom end of the wage distribution,” he says.

Want to contact your legislators about an issue that matters to you? Find out how to contact your senators and member of Congress here.

What is RSS? RSS makes it possible to subscribe to a website's updates instead of visiting it by delivering new posts to your RSS reader automatically. Choose to receive some or all of the updates from Indiana Public Media News:

Support For Indiana Public Media Comes From