Minimum Wage Is The Price Floor For Jobs Essay

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Minimum wage is the price floor for jobs. Many people are either for it or against it, however not denying the fact that it is very important to employees. Because, minimum wage creates a pathway for workers to sell their labour though getting paid less, businesses willingly hire them and workers gain experiences. Yes, in many ways it can benefit both the employers and the employees but there is always a down side to it. When it comes to revenue businesses can only spend so much and it does not benefit the employees in the long run due to cost push inflations and poverty. A study based on minimum wage jobs from 2001-2012 in UK and Romania indicates how minimum wage have an effect on these countries. Youths are also being affected by minimum wage jobs. The article “Effects of rising minimum wage: theory, evidence and future challenges” closely examines the minimum wage “based on the contribution of theoretical and empirical research” in the EU countries such as the UK and Romania, and comparing them to the US. They were able to come to the conclusion of the Uk 's minimum wage being slightly higher than the USA at 46%. Largest benefit was the gap reduction in the lower wages and a 5% increase of the lowest revenues. Romania stood out the most out of all the EU for minimum wage evolution and the effect of its policies on the labor market in more reasons than one. Using normal values when looking at an economy with high inflation rate is not relevant. Minimum wage was

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