A PNW Finance professor says that Indiana’s minimum wage is less than half of what students need to live on their own.

While California this year raised its minimum wage to $16 an hour, Indiana’s $7.25 minimum has not changed since 2009.

“The minimum wage originally was designed to give people some wages that act as a floor,” said Anthony Sindon, clinical professor of Finance and Economic Development. “It was never really designed to enable somebody to live in an apartment or buy food on their own.

“A livable wage in the state of Indiana probably should be around $15.79 an hour,” he said.

Most recently available census data showed that the median household income for one earner in 2022 for Indiana is $51,689 which is well above minimum wage. 

“These days a very small percentage of the labor force is subject to the minimum wage,” said Sindone. “Is the minimum wage relevant? That’s the question. While it makes us feel good to have a floor on wages, it’s irrelevant in respect to the labor market because you’re not going to get good people to work for $7.25 an hour.”

At PNW, student workers are paid an average of $10 an hour but still struggle to make ends meet.

“It’s expensive and the main thing is that they don’t have public transportation available here. So, if we have to go anywhere, we have to take an Uber,” said Pragadi Karmacharya, a Business Administration major in the first year of her master’s program. “I also have to order food online … because there is no way to go around. There’s a [Strack &] Van Til nearby but I have to carry everything by myself.”

Karmacharya is an international student from Nepal, who works as a student life assistant in the Office of Student Life on campus. 

“As an international student, we are only allowed to work 20 hours a week and we can’t work any other jobs except for on campus jobs,” said Karmacharya. “I use the money I make here only for groceries and the rest of my expenses are covered by family back home.”

Support from family members and living at home are the main ways students said they cope with the cost of living in Indiana. 

“This is my only source of income, but I live nearby with my parents. So, I don’t have any major expenses other than my car,” said Reina Mendoza, a second-year Psychology major. “Everything is just so expensive right now.”

Mendoza works as a student library assistant on campus.

“I’m not in debt or anything like that, so the money I make at the library is good,” she said. “It’s just not enough to live anywhere else.”