Many working Iowa State students who are typically classified as “low skill” will have a little extra beer money this month.

The state of Iowa increased the minimum wage from $4.65 to $4.75 per hour. The increase went into effect Tuesday, the first of the month. The minimum wage will be increased again, to $5.15 per hour, on September 1, 1997.

“I think the increase is a good thing. Even though it is not much, hard workers deserve it,” said Amy VanDyke, a freshman in zoology.

Peter Orazem, a professor of economics at Iowa State, said the minimum wage increase will not dramatically affect the Ames community.

“The labor demand in Ames is more stable,” he said. “Ames has the benefit of Iowa State and government agencies.” Few government agencies, like ISU, employ a large number of minimum-wage workers.

Orazem added that since 1989 Iowa has had a higher minimum wage than the federal minimum wage. The new minimum wage in Iowa may result in a decrease in hours for lower-skilled workers. Iowa business firms may grow more slowly and there could be reductions in job opportunities for teens and low-skill labor, a category many Iowa State students are in.

“Raising the minimum wage will have both long- and short-term consequences. People who are at minimum wage will be able to afford more, but the price of goods could go up and cause these people to need another raise,” said Chad Swanson, a freshman in animal science.

Occupations targeted by the increase include laundering or repairing clothing, construction, hospital or institution operation, schools of secondary or higher learning, and retail or service establishments with an annual sales exceeding $300,000.

In Iowa, the majority of businesses offer a starting wage above $5.00 an hour, such as fast food places like McDonald’s and Wendy’s.

Jobs that pay less than $5.00 an hour can be difficult to identify. The Nevada Parks & Recreation Department is one.

Tim Hansen, director of the department said, “All of our seasonal positions will be at minimum wage. Anybody who would start out would start out at $4.75.”

Seasonal positions include part-time maintenance and instructors for youth sports.

Another large employer of students in Ames, Target, starts its workers at $4.90 per hour. After 30 days the wage is increased to $5.15 per hour.

Day domestic workers such as housekeepers, baby-sitters and chauffeurs are included in the mandatory increase if their weekly wages are at least $100 or if they work more than eight hours a week for one or more employers.

Students who wait tables and receive tips, will also see an increase in their hourly wages. These workers will now receive $2.85 per hour. They’ll get $3.09 an hour on Sept. 1 of 1997. The new law only applies if the worker receives $1.90 to $2.09 per hour in tips.