Effects Of Minimum Wage In Developing Countries

To begin, there is an extensive debate over whether if the U.S were to raise minimum wage, could it really help the working poor of low income families. Nancy Cook, in her article from the National Journal, “Why a Minimum-Wage Hike Can’t Help the Poor”, she points out that two thirds of around 100 surveys from 2007 had a negative effect and that it does more for the middle class than the lower one. (p.14). So, therefore, from her

The issue of the minimum wage has recently come to the forefront of the debate on social policy. There is much disagreement over the wisdom of an increase in the minimum wage in the current fragile economic recovery. Some argue that a dramatic increase is what is needed in order to lift the standard of living for those in the bottom of the economic pyramid. Economists reason that the basic principle of supply and demand mandates than an increase in the wage would result in the loss of available jobs. Small businesses maintain that it would spell their doom.

scrutiny of increasing minimum wages in order to alleviate poverty and increase the standard of

Minimum wage is the minimum hourly wage an employer can pay an employee for work. Minimum wage helps people pay for things they use or need every day like food, clothes, and their homes. In some cases and for certain people the the federal minimum wage is not high enough for them to live on. In this paper I will argue that minimum wage should be increased to benefit people in a variety of ways, both socially and economically. Increasing minimum wage will also help cut down on government spending and pull people out of poverty.

A common solution to moving low wage workers’ away from poverty is raising the minimum wage to increase family income. They would receive higher pay that would increase their household’s income and would experience their family income to incline above the federal poverty threshold. Also workers who receive a higher wage because of the increase of a minimum wage would face receiving less benefits and paying a more expense tax. Raising the minimum wage could possibly result in a small number of low wage workers to be without a job and experience a decrease or decline in income because of a higher minimum wage. Additionally, effects of a higher minimum wage rely on the number of workers that consist in a low wage workers family; if those workers became unemployed (perhaps for how long?) and if there are other adjustments in family income. For example, the decline in a family’s

Initially the minimum wage law was introduced to reduce poverty and inequality. Proponents of the Minimum wage do believe that these laws attain to these objectives. They do guarantee that the workers at the bottom level of the pay scale are being treated right and don’t get underpaid as the result of the belonging to a particular race or sex. They also guarantee that the workers are receiving a reasonable compensation from the employer (Cho, n.d.). The proponents of minimum wage also believe that it may have a positive reflection on the work ethics of the low-pay workers, thus it may benefit employers. It is also might encourage more people to join the workforce instead of trying to gain earnings by the means of unlawful methods, such as prostitution, selling narcotics

Each year that the minimum wage figures stay stagnated at a specific number in nominal dollars, the reality of inflation slowly bites in as its real value is gradually adjusted and in the long run minimum wage earners are left with payments that cannot sum up or fulfill their household and other personal needs. On analysis of this fact, it is evident that the well-being and living standards of minimum wage workers is highly threatened especially for those people who have families and in this earning bracket. Currently, at a minimum wage rate of $7.25 per hour on a full time basis does not necessarily negate to the fact that they get to cross the estimated government poverty line on an all rounded annual basis. Comparing the current status and the 1960s value rates, the wage income is not enough to cater for the needs of a woman together with her family simply

Workers from around the world no matter the culture, country, or type of job believe that increasing the minimum wage would solve individual financial problems. It is important to know that this subject is not a black-and-white problem and can not be answered by a simple yes or a no answer. This article will be focusing on the minimum wage in America. Furthermore, we are focusing on the State 's minimum wage rather the Federal minimum wage. It is important to understand that the state 's minimum wage is different than the Federal. In some states it may be higher or lower than the Federal, and other states in comparison. Although increasing a state 's minimum wage would have a positive effect on individual workers, it may have a negative and long-lasting effect on the state’s cities and its economy.

Policymakers in the United States continually struggle to create viable and sustainable solutions to the poverty outbreak that is prevalent in our country. This has become a critical part of the road to recovery from the recent economic recession. One of the main approaches suggested to eradicate the pervasive poverty problem is increasing the minimum wage of American laborers. If adopted, this suggestion is expected to be implemented at both the state and federal levels. This approach is based on good intentions as it is projected to have positive effects on the employment, wages and overall poverty levels in the country. However, increasing the minimum wage will only hurt the low-income earners, less-educated and experienced

In 1938, the first national minimum wage laws in the United States were passed as part of the Fair Labor Standards Act, which served as “a floor below wages,” to reduce poverty and to ensure that economic growth is shared across the workforce. Today, many people who work for companies that pay at or near the minimum wage and remain near or below the poverty level rely on government health and food security and income programs to supplement their living expenses. Since 1938, there have been many additional policies to the Fair Labor Standards Act that have changed many things, such as increasing the national minimum wage numerous times to the currently salary level, which was set in 1997. The Fair Minimum Wage Act of 2007, from the United States Department of Labor Wage and Hour Division, was a policy to change the federal minimum wage from $5.15 to $7.25 in three additions, which began in July of 2009. (U.S., 2009).

In this globalization era, as various countries see growth in their economy, there has also been significant differences in the wages set to employees in different countries. The lowest wages set by the law that are fixed to a particular amount which is also defined to be the price floor below which workers shall not sell their labor, has its own effects. The minimum wage law came into force as a matter of social justice amongst the low-wage workers, also to reduce exploitation and see that workers can afford the standard basic living expenses and necessities, not to increase the unemployment rate, indeed to increase the employment rate.

The minimum wage increases tend to reduce employment, hurting young and less-educated workers the most. This means that it is highly risky for the proposal to fail to target poor people. Like a trend, job losses have been not avoidable since the earliest imposition of the minimum wage. When considering current job markets, young or less-educated workers already have difficulty finding jobs and gaining important work experience, such mandates will likely make it much

This paper examines the effects minimum wage have on the poverty level. Decades of research has provided evidence that an increase in minimum wage does not lower the poverty level. Other studies about the minimum wage and teen unemployment rates was also introduced by various authors. The poverty level in the United States (U.S.) has a ratio of 1:7, which means there is over 40 million people living in poverty. Compared to other countries, the U.S. poverty level is a lot higher, with the only exception being Mexico (sitemaker.umich.edu). Additional studies suggests that an increase in the minimum wage will generate a decrease in employment. This paper explores whether or not an increase in the minimum wage affects teen unemployment, decrease

Poverty is a significant topic that is being investigated, talked about and most importantly lived in by millions in America. Many American citizens, specifically the children are not only living in poverty, but they are living below the poverty line due to low minimum wage (Gidfar). A child living in poverty can face serious problems in the future. Reducing poverty should not be charity work. As citizens of the world it should be a social responsibility to find a way in which poverty can no longer be a living status, especially for a developed country like America. It is one of the top countries before Mexico with the highest rate of child poverty (Gidfar). In context, minimum wage has a large impact on poverty within a country, as the higher the minimum wage the more disposable income families have access to. The discussion of how the “elasticity of demand of unskilled workers” determines whether or not the minimum wage should be raised to reduce child poverty is essential when validating the relationship between the two variables (Rutkowski 7). While the analysis of William Even and David Macpherson’s study emphasizes the importance of taking employment in to account as a variable as an indication to prevent ‘job loss’ (2), through the clarification that although the United States view child poverty as being an “intractable problem"(WaldFogel 3), there is evidence to support that a raise in the disposable income of families can lead to reduction in child poverty (Dahl and

In a paper titled “Four Reasons Not to Increase the Minimum Wage,” the Cato Institute, a libertarian think tank, offers four empirically backed consequences of increasing the minimum wage; these consequences include: the loss of jobs, low skilled workers being disproportionally affected and priced out of the job market, a minimal effect on reducing poverty, and higher prices for goods. The paper compiles a number of studies to support these