Walmart has announced it’s increasing its base wage to 10 dollars an hour over the next year. The retailer’s plan would boost the rate to 9 dollars an hour by April, and 10 dollars by next February. Lawrence University economics professor Marty Finkler says Walmart’s move could lead to higher pay for other low-wage workers.
“It depends in each market how many people are available at what wage, and if they’re having trouble hiring or keeping people,” Finkler said. “I’m guessing that Walmart is doing it because they think it will make them a more attractive employer.”
Finkler said the move could also be aimed at stemming a high employee turnover rate, which can have negative consequences. “Like many businesses, there’s a cost to turnover,” he said.