Diagram 3: The Implement Of Minimum Wage

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However, it can obviously see that labor surplus in Diagram 3 is greater than Diagram 2. The plan to set the minimum wage at $15 an hour will increase the rate of unemployment by higher proportion if compare to minimum wage at $7.25. According to the article, this increment of wage floor not only affects the employment rate of workers but also influences the business profit of the fast-food sectors. Although a higher minimum wage benefits the workers with the higher cost of living in New York, but it also bring negative impacts to them. The unskilled workers tend to compete with those skilled workers, because more people look for jobs in the labor market. Meanwhile, the employers tend to choose those skilled workers which lead to many unskilled
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