The Effects Of Minimum Wage On Jobs Essay

The Effects Of Minimum Wage On Jobs Essay

Length: 1429 words (4.1 double-spaced pages)

Rating: Strong Essays

Open Document

Essay Preview

Increasing the minimum wage has always been a very controversial topic because many people are unsure of how it will effect society. One of the main concerns is its effect on jobs. According to most economists there is no “free lunch” meaning something has to be done to pay for the cost of increasing wages (Wilson). Most companies will not just take the hit and accept reduced profits. Instead companies will find other ways to makeup for their loss like decreasing the amount of employees. With information limited to two opposing opinionated articles, a novice can conjecture increasing minimum wage does not significantly decrease the amount of jobs.
The first article, “The Negative Effects of Minimum Wage Laws” by Mark Wilson is against increasing minimum wage. He claims that an increase in minimum wage reduces jobs, but he does a terrible job at supporting his claim.
Wilson’s approach of analyzing minimum wage solely through the use of numbers, oversimplifies the economy and makes his conclusion less persuasive. He first analyzes what an increase in minimum wage will do by establishing the elasticity of the labor market (elasticity determines who bears the burden of an increase in minimum wage). He supports the traditional economist views that jobs are more of a necessity making them inelastic. This means that the employees bear the burden and there are job losses. The problem with this approach is that it depends on him being correct about the elasticity of minimum wage. If minimum wage is elastic then his findings would be completely different. Currently there are many economists who have changed their mind and now believe the labor market its elastic. Wilson ignored this fact and computed the data to find that...


... middle of paper ...


...s Doucouliagos and T.D. Stanley (2009) and by Dale Belman and Paul Wolfson (2014) find minimum wage has little or no impact on employment (Christman).
The use of controls among the new minimum wage studies and meta-studies by credible economists is very persuasive. All of them point to an obvious consensus that increasing the minimum wage will not decrease jobs. Thinking about companies as individuals instead of generalizing them and making it into numbers also makes more sense to me. It shows a deeper understanding of the complexities of the economy. Overall I think Christman’s sophisticated argument for increasing minimum wage was more persuasive than Wilson’s. As a novice it is difficult to make an in-depth assessment of all the studies accuracy but judging from what is known it seems increasing minimum wage does not significantly decrease the amount of jobs.

Need Writing Help?

Get feedback on grammar, clarity, concision and logic instantly.

Check your paper »

The Wage Of The Federal Minimum Wage Essay

- As of February 2014, there are approximately 155 million civilians in the United States work force (The Employment Situation). President Barack Obama addressed the many individuals and their families who are working full-time under the federal minimum wage, yet still classified as poverty, in his annual 2014 State of the Union speech. Even with a minimum wage established by the federal government, working class civilians under the federal minimum wage of $7.25 are struggling with day to day life, which includes mortgage payments, food expenses, child expenses, and higher education expenses....   [tags: Minimum wage, Employment, Barack Obama]

Strong Essays
1933 words (5.5 pages)

Reducing The Minimum Wage Is Not The Answer Essay

- Increasing the Minimum Wage is Not the Answer Before the Government introduces the new increase in minimum wage, often referred to as the ‘living wage’, they must consider the significant impact of the consequences of doing so. The increase in minimum wage has fatal consequences for the very people the government is trying to help, the poor who are affected by an unfair tax system. The introduction of this new arbitrary increase in wage will hit the poorest the hardest; the loss of jobs to automation and productivity, and, by proxy of the soon-to-be the minimum wage, the brutal effects of inflation....   [tags: Minimum wage, Wage, Living wage]

Strong Essays
1011 words (2.9 pages)

Minimum Wage Is A Good Thing Essay

- The minimum wage has been a topic that has always been discussed. News about increasing minimum wage appears on the news every year and people start talking about whether raising the minimum wage is a good thing, and the effects that come with the increase of minimum wage. There have been many rumors, and discussions about raising the minimum wage, some arguments may be misleading due to not knowing the effect of raising the minimum wage. The minimum wage is defined as the minimum amount the employer has to pay their employees for their labor....   [tags: Minimum wage, Wage, Employment, Unemployment]

Strong Essays
1484 words (4.2 pages)

Minimum Wage For The United States Essay

- In my short life, I’ve worked two minimum wage paying jobs. My first job was as a fry cook at Chick Fil-a when I was 16, and my second and current job is at Sports Authority. Minimum Wage is defined as “the lowest amount employers can their employees for each hour of work.” As minimum wage paying jobs, they were looked at, in my case anyways, as a way to have some extra pocket change and gas money. And that is the way most Americans view jobs such as fast food: as a place for teenagers to make money throughout high school and college and maybe even learn the value of a dollar....   [tags: Minimum wage, Employment, Wage, Laborer]

Strong Essays
1509 words (4.3 pages)

Essay about Should The Minimum Wage Be Increased?

- ... People might get more encouraged to make investments in companies and will let the company to grow faster to hire more people. The increase of the minimum wage could have no affect but it will cause a lot of problems, but it will cause a lot of problems in the future. On November 29, there were dozens of protests across the United States, and roughly about two hundred people were arrested on Tuesday night because of the protest. Many protesters wanted an increase of the minimum wage from seven to fifteen dollars an hour for everyone working in the United States....   [tags: Minimum wage, Unemployment, Employment, Wage]

Strong Essays
1786 words (5.1 pages)

Essay about Minimum Wage Is The Lowest Amount Of Payment Permitted By Law

- ... The workers that were able to get a job would be better off with the higher wage, but there’d be so many who would be without a job, and therefore raising wage is not the best way to solve the poverty issue. In a calculation done by the Congressional Budget Office, they were able to project that even with minimum wage only rising to $10.10, there would already be half a million jobs that would be lost (The Effects of a Minimum-Wage Increase on Employment and Family Income.). In a Forbes article, in which they used the same model, they projected that with a fifteen dollar minimum wage, 6.6 million US jobs would be lost....   [tags: Minimum wage, Employment, Wage]

Strong Essays
1678 words (4.8 pages)

Minimum Wage And The Wage Essays

- The federal minimum wage became a law in 1938 and the first minimum wage started at .25 cents. Over the past years, the minimum wage has seriously changed because of the power of economy. In 1948 the minimum wage was starting with 3.09 to 8.67 dollars an hour, however, in 2013, the average was 6.60 dollars per hour. As the decades past, this amount of money was changing dramatically till today, which is 7.25 dollars an hour as shown in the graph below. That being said, today’s minimum wage is more than the minimum wage has historically presented, although it remains over a dollar an hour below its historical high....   [tags: Minimum wage, Employment, Wealth, Wage]

Strong Essays
1164 words (3.3 pages)

Minimum Wage And The Wage Essay

- “In 1938, the Fair Labor Standards Act established a federal minimum wage to serve as “a floor below wages,” to reduce poverty and to ensure that economic growth is shared across the workforce,” (AFL-CIO, 2016). Minimum wage has been a recurring issue in America; an issue primarily split between political parties, with the Republican party being primarily against it while the Democratic party supporting the raise. “On July 24, 2009, the wage floor was hiked from $6.55 to $7.25 per hour… It remains at $7.25 today, despite calls from Democrats to boost it again,” (Jamieson & Benderey, 2014)....   [tags: Minimum wage, Employment, Small business, Wage]

Strong Essays
1499 words (4.3 pages)

Essay on The Effects Of Higher Minimum Wage

- The Effects of a Higher Minimum Wage When I was eleven years old my parents told me that they could not afford to buy me new school clothes that year. So, in my desperation for some new school clothes I started working. I did odd jobs on farms for family and friends, as well as babysitting. I worked that whole summer of my 6th grade year, and I continued to work every summer up until my senior year in high school when I started to work full-time. I started helping pay my parents rent when I was thirteen and bought most of my own food as a young adult....   [tags: Minimum Wage Essays]

Strong Essays
1971 words (5.6 pages)

The Minimum Wage Essay

- "The minimum wage is something that F.D.R. put in place a long time ago during the Great Depression. I don't think it worked then. It didn't solve any problems then and it hasn't solved any problems in 50 years." -- John Raese For many years it has been a matter of conventional wisdom among economists that the minimum wage causes fewer jobs to exist than would be the case without it. This is simply a matter of price theory, taught in every economics textbook, requiring no elaborate analysis to justify....   [tags: Minimum Wage Research Paper]

Strong Essays
3664 words (10.5 pages)