Minimum Wage Law Impact

There has been many conversations about what the positive impacts can come to America 's lowest income workers as a result of an increase in the minimum wage, and there has also been equally as many discussions over the negative effects the increase can have on similar people. This paper’s purpose is to combine each viewpoint and objectively analyze the arguments for and against an increase in the minimum wage. I will first discuss the benefits for an increase, then the disadvantages, and in the last paragraph, I will

In our modern society one of the seemingly least controversial topics is the minimum wage. The popular opinion wants to raise the minimum wage, but is the popular opinion always right? Throughout recent years, politicians have made promises to raise the minimum wage to help low-income earners live a better life. Contrary to popular belief, raising the minimum wage actually hurts low-income earners and low-skilled workers. We must first define a low-skilled worker. A low-skilled worker does not mean that particular employee is not intelligent; it simply refers to a worker who cannot perform as efficiently due to low educational attainment. Through this paper, I hope to inform you, Mr. Randall L. Stevenson, and our company, AT&T, about the disadvantages of raising the minimum wage.

In this essay I will be discussing minimum wage legislation and minimum wage. I will be defining minimum wage and explains what minimum wage legislation is. This essay will be answering question like what is the minimum wage law, and why was it made a law in the U.S. or what minimum wage pay rate would I like to see as the minimum wage rate. I also will be discussing the reason why fast food workers are seeking a higher minimum wage. I will be using the book compensation by Milkovich and the internet to apply facts and answers to this paper.

Minimum wage is the lowest pay permitted by law that businesses should legitimately pay their laborers. Comparably, it is the price floor underneath which specialists may not offer their work. Even though the minimum wage laws are already in use in numerous places, contrasts of feeling exist about the advantages and disadvantages of minimum wage. Supporters say it expands the way of life of laborers, diminishes neediness, lessens imbalance, helps assurance and powers organizations to be more efficient. Whereas rivals say it builds destitution, builds unemployment (especially among untalented or unpractised specialists) and is harming to organizations, in light of the fact that exorbitantly high minimum wages oblige organizations to raise the

The first minimum wage law was implemented in New Zealand and Australia in the late 1900s. In 1940s, George J. Stigler founded the first standard model of minimum wage. The model predicts that the minimum wage system. It set above equilibrium wage level, would create unemployment because some previously employed labors lose their jobs while some find it is not worthwhile to work at the minimum wage that is above competitive wage (Stigler, 1946, p. 361). Ehrenberg and Smith define the minimum wage as a policy that compels the employers to increase wages paid to all low-wage employees (2006). According to Lee, minimum wage is the minimum level of payment recognized by law for work performed (Lee, 2002, p.1). However, the fact remains that a minimum wage has social and economic effects, the dynamics that will be discussed in this paper.

According to The Minimum Wage: Opposing Viewpoints, the minimum wage is defined as “the lowest hourly wage for work allowed by government” (Berlatsky 14). In an article by “AFL-CIO America’s Unions”, they summarize the purpose of the minimum wage. The article says the minimum wage was created to protect the lowest paid workers, reduce poverty,

There has been many conversations about what the positive impacts can come to America 's lowest income workers as a result of an increase in the minimum wage, and there has also been equally as many discussions over the negative effects the increase can have on similar people. This paper’s purpose is to combine each viewpoint and objectively analyze the arguments for and against an increase in the minimum wage. I will first discuss the

Since its inception, minimum wage has been a controversial topic among economists. The United States passed the Fair Labor Standards Act (FLSA), a federal minimum wage law, in 1938 and has increased its wages and who it covers at sporadic intervals. Minimum wage can be defined as the smallest amount of compensation an employee receives for performing labor (depending on the industry). Since the federal government decided a minimum wage, it is illegal and a labor crime to pay any employee less than the federal minimum wage (Neumark and Wascher,

Minimum wage is for workers in the statutory working hours or labor contracts to signed by the working time, and agreed to provide the normal labor under the premise of the employer should be paid according to the minimum labor remuneration. With the development of an economy, the minimum wage has become the people's social security system, to protect the workers and their family members of the basic of life, to maintain the labor force

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.

Minimum wage bill majorly refers to a price control that is imposed by the government. The price control concept set a floor indicating what the minimum price must be paid or be imposed on certain services or goods (Murphy). The main aim of a government setting up price controls is always to ensure individuals or employers of a certain job group receive fair wages. Also, the minimum wage laws are mostly used by the federal government to ensure a basic quality of life among all the countries citizens. This aspect is to establish a fair level of economic equality instead of having copious amounts of poor or underpaid citizens (Vitez). It is further important to note that these minimum wage laws can often be used to force companies to pay equally all individual regardless of sex creed or race.

If the minimum wage is above the equilibrium level, the quantity of labour supplied exceeds the quantity demanded. The result is unemployment. The minimum wage then raises the income of those workers who have jobs, but it lowers the incomes of those workers that cannot find jobs. Workers with high skills and much experience are not affected, because their equilibrium wages are well above the minimum. An example of a price ceiling is rent control. The goal of this policy is to help the poor by making housing more affordable.1/ 2

In the United States, minimum wage has remained at a low number for several years. Minimum wage is defined as the lowest possible income that an employer can legally pay an employee. This ensures that all people are fairly paid and not defrauded by companies or businesses. Minimum wage is considered a price floor and the minimum wage laws determine the lowest price possible that any employer must pay for labor. In an economic model, the quantity of supplied is greater than the quantity demanded and the minimum wage is above equilibrium price and quantity. Minimum wage prevents labor supplied and labor demanded from moving

Nowadays, minimum wage is very important for workers in this world. In addition, minimum wage is also a core element of public policy in lots of countries. For example, minimum wage has become a hot topic in Taiwan recently. The Taiwanese complained that the working hours are too long, and the wages are too low. Because of that reason, workers in Taiwan have come forward to protest this policy. Therefore, according to this example, minimum wage has become an issue that cannot be ignored anymore, not only in Taiwan but also all around the world. There are many advantages of establishing minimum wage. It is not just a common reference when companies hire new employees but also can help certain families, help with setting small

A minimum wage is a compensation paid to the workers by the employer, irrespective of his ability to pay, for the services rendered by them. The Committee on Fair Wages said that the minimum wages should be such which is sufficient to cover the bare physical necessities of a worker and his family. It must include some measures for education, medical facilities and other amenities. Thus, a reasonable standard of living must be rendered to every