Wage Gap Between The Middle Class And The Upper Class

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Introduction Wage is a topic that is constantly covered in the media. One big issue is the growing wage gap between the middle class and the upper class. While minimum wage increases are considered a good method to reduce income inequality, they are controversial since many business owners and economists argue that they increase the unemployment rate. Impact of minimum wage on employment One concern that is commonly mentioned during the debate on raising minimum wage is the loss of employment as a result of the legislation. A common fear is that small business owners will not be able to pay their employees and may need to lay off workers In order to keep the business running. Skeptics were also afraid that large corporations will lower hiring quotas to recoup on the cost of having to raise employee wages, or that large corporations will lower the pay of other workers to help offset the cost further. A good place to find evidence on this claim will be to compare Illinois during the two-year gap between 2003 and 2005. During these years, Illinois experimented with its minimum wage. At first, Illinois suffered substantial job losses among private employers during 2003. However, employment increases during 2004 and 2005 completely negated these job losses, and put Illinois on the same level as other states that did not increase their minimum wage. What we can gather from this is that a minimum wage increase may initially lower employment, but in the long run the

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