Pros And Cons Of Minimum Wage

Wage problem is an important topic that is related to sociology and economics and it is also an important part that ordinary people are close interested. As the currencies performance of the value of labor, wage is the main source of the workers’ life, maintaining the survival and development of every worker and their family members. However, it is also the material basis for social stability. The minimum wage in the form of a national law to impose an important guarantee for low-income groups of workers, most of the world market economy countries have established this system. There are some theoretical models and theoretical research achievements of several minimum wage systems. Also analyzed from both positive and negative economic effects
Firstly, the minimum wage system has some good affects. For example, guarantee the basic living and promote consumption increasing the minimum wages of low-income groups is to ensure and improve their income. The beneficiary of minimum wage desires strongly to consume. In addition to maintaining basic living, raising their minimum wage gives them certain consumer space as well. Along with the increase of the minimum wage, this segment of the population's living conditions will be greatly improved, which promote their consumption and stimulate domestic demand. Then, it will promote economic development. Also, the increase of market demand will lead to expansion; thereby increase the demand for
They form two diametrically opposed forces. Opponents argue that the minimum wage is unfavorable employment, while the supporters argue that the minimum wage can promote employment. I believe that, the impact of minimum wages on employment is not the same. It defies generalizations. Minimum wage policy is to increase employment or reduce employment, or have no impact on employment, depending on the specific circumstances of a country's labor market. If the labor market is in a state of perfect competition, introduction of a minimum wage may be to some extent reduce employment. If the labor market is in a state monophony and an appropriate level of minimum wage, it will help employment. If employers reduce the welfare of the employees, it objectively will weaken the employment. In addition, a large number of foreign empirical results also demonstrate the impact of the minimum wage policy on employment is