Minimum Wage And The Wage Essay

1208 Words5 Pages
Minimum wage requires paying every employee a specific wage regardless of the employee productivity. It is the responsibility of the government to set the minimum wage. To understand this, a biology analogy can be used: some animals are stronger compared to others. In economic perspective, some people are relatively unable to deliver compared to others. Among them include, disabled, unskilled, and the youth. Due to their low productivity, they are entitled lower wages corresponding to their efforts (Waldman, 2011). Normally, government attempt to raise minimum wage results to increase in the level of unemployment. This leads to desperation, increase in dependency and isolation among workers. The employer is forced to fire weak taskforce because holding them will attract a huge loss (Henderson, 2008). For instance, consider a situation where the employer pays $2.50 per hour to a young worker with no education qualification and relevant skills. This amount corresponds with the productivity of that particular worker. If the minimum wage law becomes operational requiring a payment of $5.50 per hour, it implies the responsible employer will be losing $3 in every hour while the employee benefits by the same regardless of his productivity. However, this requirement will undermine employees with higher productivity per hour. A worker who used to be paid $10 per hour will have to face a reduction. This can negatively affect his productivity. Job discrimination will also rise and

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