Introduction: The relation between employment and minimum wage is one of the most debated topics in economics. The debate on minimum wage has been going on ever since it was first implemented in New Zeland in 1894 and Austrian colony of Victoria in 1896 (Starr, Gerald 1993). Although minimum wages has been implemented in most countries there is still heated debates about the benefits and drawbacks of minimum wage. Numerous studies have been conducted in the USA on the relation between minimum wage and employment, and many show contradictory results. While initial reports found a correlation between unemployment and minimum wage, subsequent studies have show no proven relationship. This report focuses on the findings of these later studies . Minimum Wage: The Merriam-Webster dictionary has defined minimum wage as “an amount of money that is the least amount per hour that the workers must be paid according to the law”. Supporters of minimum wage say that it boosts morale of workers, improves their standard of living and reduces inequality and poverty. Opponents of minimum wage claim that minimum wages increases unemployment in low-skilled workers and increases the cost of companies, forcing them to raise prices making their exports uncompetitive. The minimum wage law is implemented in almost 90% of the countries in the world.(ILO, 2006) The minimum wage is different in different countries and in certain countries there are even different minimum wages in different states of the same country. Most European nations have minimum-wage laws as well; some, such as France and the United Kingdom, have significantly higher minimums than the United States. In the USA, the federal minimum wage set by the Department of Labour at $7.25 per h... ... middle of paper ... ...rsey and Pennsylvania." American Economic Review, vol. 48, no. 4, pp. 772-793. 3) Eccles, Mary and Richard B. Freeman. 1982. “What! Another Minimum Wage Study.” National Bureau Of Economic Research 4) Mankiw, Gregory (2011) Priciples Of Microeconomics sixth edition , South-Western Cengage Learning p118 5) Minimum wage, IGM Economics Expert Panel 2013 Retrieved on 9th February 2014 from : http://www.igmchicago.org/igm-economic-experts-panel/poll-results?SurveyID=SV_br0IEq5a9E77NMV 6) "Minimum Wage." Merriam-Webster.com. Merriam-Webster, Retrieved on 9th February 2014 from http://www.merriam-webster.com/dictionary/minimum wage 7) International Labour Organization 2006 : Minimum wage policy 8) Starr, Gerald, 1993. Minimum wage fixing : an international review of practices and problems (2nd impression (with corrections) ed.). Geneva: International Labour Office. p. 1
The minimum wage has always been a controversial subject that has more and more people debating about the subject. While the talk about minimum wages are highly popular it is an important subject to get informed about if you’re an employee or employer because it has to deal with your money. What is minimum wage? Minimum wage is the hourly wage an employer can pay an employee for his or her work. While the talk about raising the minimum wage has caused some attention in both negative and positive. Nevertheless, the topic that the minimum wage offers substantial benefits to low wage workers without any negative effects to business owners has a growing view among economists.
The minimum wage was, as it should be, a living wage, for working men and women ... who are attempting to provide for their families, feed and clothe their children, heat their homes, [and] pay their mortgages. The cost-of-living inflation adjustment since 1981 would put the minimum wage at $4.79 today, instead of the $4.25 it will reach on April 1, 1991. That is a measure of how far we have failed the test of fairness to the working poor.” (Burkhauser 1)
Understanding the basic concept of minimum wage is important for every single individual. We all live in this world together and it is obvious that there is an order. In order to continue our lives and afford our basic needs, we all need to work and gain wealth. As the old adage says ‘‘There ain’t a such a thing as a free lunch.’’ We need to give up on something that we like to get something else that we like. That’s why, every single individual in the society face trade-offs. However, people have different status. Some people work as employees and some work as employers. In that case of minimum wage the trade off is between employees and employers. Employees work for employers in order to gain money and afford their minimal living expenses whereas employers give up on their money and pay for employees because employers take care of their need of labor. Employers pay for their workers who we call employees and employees gain hourly money. The calculated minimum money that they gain in an hour base called minimum wages. Besides, there is this cycle that everyone actually works
Minimum wage is a topic that has been popping up since the 1980s. From whether we should lower it, or even raise it, but now in the 2000s minimum wage has been the center of attention more than ever. There are two sides to this topic of minimum wage; whether it creates more jobs or does not create jobs. Those who argue that raising minimum wage will create more jobs will have a rebuttal which is that it does not only cause the loss of jobs but that it would make things much worse and vice versa for those arguing raising minimum wage will cause loss of jobs. There will be two authors representing opposite views, Nicholas Johnson supporting minimum wage will not cost jobs with his article “ Evidence Shows Raising Minimum Wage Hasn’t Cost Jobs”
Minimum wage is a difficult number to decide on because it affects different income earning citizens in different ways. According to Principles of Microeconomics, by N. Gregory Mankiw, minimum wage is a law that establishes the lowest price for labor that and employer may pay (Mankiw 6-1b). Currently, the minimum wage in the United States is $7.25 per hour. For many years politicians and citizens have argued on what should be the minimum wage that would benefit the economy and society in general. A minimum wage was first established in 1938 to increase the standard of living of lower class workers. To discuss what is better for the country and its citizens, people have to understand what is a minimum wage and what are its effects.
Its well-known that minimum wage can easy vary from state to state city to city and even county to county. Furthermore each minimum wage law in each state/city or county has their own set of guidelines. The disparity of minimum wages within state lines is very diverse. For example the state of California has a state minimum wage of $8.00, while in Richmond, California the minimum wage $12.30 has recently been approved (www.foxnews.com). This is the highest among any state city or county and $2.00 above San Francisco’s $10.30 minimum wage (www.foxnews.com). For Richmond, California this makes sense becaus...
U.S. Department of Labor. 2014. “History of Federal Minimum Wage Rates Under the Fair Labor
Sherk, James. "What Is Minimum Wage: Its History and Effects on the Economy." The Heritage
Currently, in the United States, the federal minimum wage has been $7.25 for the past six years; however, in 1938 when it first became a law, it was only $0.25. In the United States the federal minimum wage has been raised 22 times since 1938 by a significant amount due to changes in the economy. Minimum wage was created to help America in poverty and consumer power purchasing, but studies have shown that minimum wage increases do not reduce poverty. By increasing the minimum wage, it “will lift some families out of poverty, while other low-skilled workers may lose their jobs, which reduces their income and drops their families into poverty” (Wilson 4). When increasing minimum wage low-skilled, workers living in poor families,
Minimum wage has been around for ages. Minimum wage employment was a temporary condition for people earning little payment until they moved on to a better paying job. These jobs helped build résumés, experiences, and skills for a better career. It has become the easiest way for people to receive easy pay. As years went on that idea began to demolish into a job that many families can get to survive and pay for their expenses. There have been many arguments going on, "Should minimum wage be raised or should it be lowered or eliminated altogether?" This action has its pros and cons. It can benefit many families as living cost has gone up, price for education is rising, and college students are in huge debts. It may increase poverty, but those
The definition of Minimum Wage is “an amount of money that is the least amount of money per hour that workers must be paid according to the law” (Minimum wage). Minimum wage, like other laws, are used to keep the economy in line. Minimum wage laws were invented in Australia and New Zealand with the purpose of guaranteeing a minimum standard of living for unskilled workers. (Linda Gorman) Minimum wage puts a price on the services one offers. Many different principles can be used to explain Minimum wage and explore the different aspects of it. Including what minimum wage does for our economy and the current status of it.
America is currently working on the issue of whether the minimum wage should be increased from $7.25 to $10.10 and economists are studying the effects of the possible increase. Minimum wage workers deal with struggles such as affording health care, paying for education, providing food for their families, putting many hours of work in while making little income and paying their bills. America’s decision to raise the minimum wage would help low wage workers to make higher incomes and would overall strengthen the economy, pulling Americans out of poverty. Americans may hold a minimum wage job if they do not have money to attend a college or university to obtain a degree in order to find a career.
Dorn, James A., and David Cooper. “Should the Federal Minimum Wage Be Raised?” U.S. News Digital Weekly 5.18 (2013): 14–14. Print.
Minimum wage is the lowest hourly pay employers are legally able to pay their workers. In United States there is huge debate on whether or not to raise the current minimum wage rates from seven dollars and twenty five cents per hour. States are leading push to increase the minimum wage by Democrats who appeal to working class Americans. Congress want to increase minimum wages above seven dollars and twenty five cents. The issues of whether to raise the minimum wage or not.
A minimum wage is an hourly wage that is established by the government, which represents the minimum amount an individual receives per hour. The federal minimum wage was established in 1938 under the “Presidency of Franklin Roosevelt” (Henderson). Currently, the majority of the states have their minimum wage less than $10. However, the federal government wants to increase the minimum wage to $12 across the United States. The federal government believes that increasing the minimum wage will assist numerous people in the United States, as most individuals are working in a minimum wage job to support their families.