Issue Minimum Wage Rate and Unemployment Levels - a Direct Relationship In any labor market‚ free or regulated‚ there is friction and rigidity that result in labor issues. With 11 million people unemployed‚ and millions more discouraged or underemployed‚ there is justification to believe that these high population levels represent a glitch in the American labor market (1). These basic statistics‚ coupled with the elementary economic theory of supply and demand‚ demonstrate that minimum wage regulation
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The issue of minimum wage in the United States of America has been turmoil in the recent past and up to this date. Minimum wage is the lowest amount permitted by the law or by a particular agreement such as that of the labor union. The concept of the minimum wage was established in 1938 by the federal government. The law was called the Fair Labor Standards Act and it also indicated the initial time that employers were legally required to pay his employees overtime pay for certain jobs. During that
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Question of Minimum Wage and Price Floors Recent events in Washington have once again raised the question of if and by how much minimum wage should be raised. The question of minimum wage is primarily one debated by economists‚ who really benefits by raising the minimum wage? Minimum wage is an example of a government intervention in order to redistribute wealth through the use of a price floor. A price floor is the legal limit on how low a price may be set for a good. In the case of minimum wage‚ employees
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United states should not pass a minimum wage. The reasons for this is that it will negatively impact the economy in several ways: Product costs will rise in order for companies to maintain profit margins‚ which will lead to drops in demand for products produced. This can ultimatley lead to job losses‚ as consumers may choose to purchase foreign goods which are more competetive in the market. Smaller companies will not be able to compete effectively in the market place‚ leading to more job losses
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“USING REGIONAL VARIATION IN WAGES TO MEASURE THE EFFECTS OF THE FEDERAL MINIMUM WAGE.” One of the major criticisms of the federal minimum wage is that it imposes a higher relative wage floor with lower wage averages. This paper examines the April 1990 rise in the federal minimum wage to evaluate the effects of minimum wages on the teenage labour market. These state specific wage floors created remarkable geographic dispersion in teenage wage rates‚ setting the stage for the empirical
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Minimum Wage Laws in America During the State of the Union speech President Barack Obama address to America that no worker should have to work full time and still remain in poverty. As the cost of living continues to rise across the United States‚ America’s minimum wage is left unchanged. We must find the appropriate balance and yield better compensation to our citizens or otherwise working class Americans will simply not be able to cope with cost of living. Raising minimum wage across America
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The minimum wage is the first steps of any person who begins climbing toward the top of the economic ladder obtaining experience‚ knowledge‚ and motivation in the process. Nowadays‚ groups and unions of employees are demanding an increase in the minimum wage. To them‚ their lives are packed of struggles fronting poverty; however‚ several of them are unskilled individuals that are lacking of professional educational knowledge. On this paper‚ it will be shown four important keys about minimum wage
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There is a major difference between what’s referred to as ‘minimum wage’ and living wage’ The living wage is the amount of pay considered sufficient for you and your family to cover basic costs of living in a specific location. Economists and policymakers use this information to determine the relative financial health of workers when comparing their pay with their living costs. There is no federal living wage law. The minimum wage‚ established by the federal government‚ specifically through the
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Minimum Wage In the United State U.S. Minimum Wage A minimum wage is the lowest hourly‚ daily‚ or monthly wage that employers may legally pay to employees or workers. The debate over minimum wage in the United States has been ongoing for over 100 years. It is a hot topic in labor‚ human interest‚ and especially in economics. Is the minimum wage too low? Is it too high? Should we have one at all? Does having a minimum legal wage help those who it is intended to help‚ or does it actually
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Cons of Minimum Wage The vast majority of economists believe the minimum wage law costs the economy thousands of jobs. The most fundamental principle of economics is ’supply and demand’. In the case of labor‚ this means that the supply of workers goes up as wage goes up‚ and the demand for workers by employers goes down as the wage goes up. For example‚ imagine a janitorial job was advertised for hire. If the wage were $100 per hour‚ thousands of people would want the job. If the wage were $1
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