The Advantages and Disadvantages of Minimum Wage

2231 WordsMay 2, 20139 Pages
This essay will give an overview of the advantages and disadvantages of the minimum wage. There are many different opinions about whether a national minimum wage is a good or a bad thing for our economy and people individually and by looking into various different resources and researching thoroughly, a conclusion will be drawn to hopefully provide a fair and unbiased review. In the UK, there are 3 different bands when it comes to minimum wage, if you are between 16 and 17 years old you are entitled to no less than £3.68, workers over 18 years of age but under 21 are entitled to £4.98, and over 21s are entitled to £6.08. This basically means that if you are employed by a company, they have to pay you the specific hourly rate that you are…show more content…
- A real escape from the poverty trap - A minimum wage might well enrich the state, but it could also fund a better benefits system, writes Yvette Cooper, Independent on Sunday, The (London, England) - Sunday, March 16, 1997. Author: Yvette Cooper. A disadvantage to minimum wage is the fact that it is the same rate all over the country. It is £6.08 for anyone, whether you live in Bradford, or London, or Manchester. Living costs in cities like this are much higher than towns and villages in the country. If anything, people may argue that the minimum wage should vary depending on where a person lives. Living costs can vary, so why shouldn’t the amount that the people in these regions vary too? “The case for varying the minimum wage by region is much weaker as regional wage differentials are not that large in the UK. The graph shows average wages by region for workers who left school by the age of 16. Wages are noticeably higher in London and the South-East and lower in Northern Ireland, but otherwise there is little variation. So the only possible case for regional variation is a higher rate for London, but this is administratively difficult as one cannot draw a line around London inside of which wages are high and outside of which they are low. So, expect to see a single National Minimum Wage.” - Economics: If it's good enough for everyone else, it's good enough for us - Labour has
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