ipl-logo

Minimum Wage Analysis

1775 Words8 Pages

In this days it is customary for countries to set a minimum wage for the labor market, this is a minimum amount that the employer can pay to the worker, this is a bottom limit to set the salary of each employee. Governments set this minimum wage determining the minimum income a worker can perceive or which is the lowest amount a company can pay their workers, this in order to try to regulate the labor market so employees do not become underpaid or companies’ abuse workers from their dominant position. But this minimum wage also has downgrades, as it can foment underemployment, informality or unemployment since the minimum wage could be higher than companies are willing to pay as such it needed to consider alternatives. Nonetheless, although …show more content…

This alternative is appreciated in Knabe & Schöb (2011) study in which they indicate that some Europe countries use a mixture of minimum weight and subside in order to minimize the negative side effects of minimum wages even so they determine that in Germany it would be more beneficial, from a quantity of employment view, to subsidize in some way the labor market, correspondingly this option wouldn’t signify more fiscal cost for the country. Moreover this is an important option from the perspective of the government and the company, for the reason that, for the first one, they reach their goal of giving people essential means for a decent life, and for the last one, the subsidize option would at least reduce, or even cancel, the excess cost of production for a high labor wage due to the minimum limit …show more content…

Although minimum wage secures a salary that should secure a decent life for employees it also comes with a decrease in overall employment, so in some way it doesn’t help all the low-level employment since some get unemployed, this event is particular observed in Peru. As such it is necessary for governments to implement alternatives that could suppress the bad effects of minimum wage among them subsidies or increment the education of the low-level employees, this last option could be done in the long run. Finally, even with the adverse effect that brings minimum wage, nowadays is the best way to regulate the labor market in this low-skill segment, especially from a short-term point of

Show More
Related

  • 15 Minimum Wage Analysis

    131 Words  | 1 Pages

    The 15 dollar minimum wage is a commonly debated topic in American politics and is quite controversial because of its unknown outcome if implemented. Many believe raising the minimum wage would cause more harm than good. Those opposing the $15 minimum wage must attempt to convince upper, middle, and lower class Americans through the use of commonplaces, inductive logic, and a deliberate argument that raising the minimum wage would cause massive job loss, increased dropout rates and encourage companies to outsource production. Making an efficient rhetorical strategy to convince the target audience against the $15 dollar minimum wage will take different strategies depending on which audience group is being addressed. Through past attempts, the

    Read More

  • Living On Minimum Wage Analysis

    203 Words  | 1 Pages

    It was in Each and every generation since has arrived at a compromise solution, even if none of the compromises are entirely satisfactory to all participants. Continuing struggles is still present in America. The book “The Labor Question in America: Economic Democracy in the Gilded Age” the equitable distribution of the fruits of labor and the participation of all citizens in American society appeared in its modern form. The recession took middle class jobs, and the recovery has replaced them with low income ones, which is an ongoing trend that has increased the income inequality.

    Read More

  • Raise The Minimum Wage Analysis

    299 Words  | 2 Pages

    Do you think Target should raise the minimum wage to $15? I think Target should go ahead with this idea because homes nowadays are very expensive to live in and people need to at least somewhere they can go home to do what your body needs on a regular basis. Many people that are working little jobs like this have to work at least two jobs to not struggle. In an article by Anne D’innocenzio she said “Thousands of workers have protested to call attention to their financial struggles and fight for $15 an hour”. This would help many people to stick with one job so for those single parents that work two jobs they would only have to work one job and not stress about being in their child’s life.

    Read More

  • The Second Gilded Age

    706 Words  | 3 Pages

    The resistance to raising the minimum wage for all workers are contained in the mindset the wealthy elites. The protection of the laissez faire ordeals halts the expansion of economic equality. This disparity in the distribution of wealth will continue to be enforced under a legislation heavily dominated by industrial reasonings. In addition, socially, a population of a specified group continues to lack the same equality to those of the different individuals. This results in the rise of a corrupt system on a national level under the desire for more wealth of those certain individuals.

    Read More

  • Minimum Wage Abolishment

    370 Words  | 2 Pages

    If you have minimum skills, Minimum education, show minimum Motivation, and provide a minimum contribution to the workplace you are going to earn a minimum wage. There are many more opportunity if the federal government did not intervene. The abolishment of the minimum wage can help the economy and add a surplus of jobs. The federal minimum is an outdated concept during a time where corruption and no labor laws were a common theme.

    Read More

  • Minimum Wage Observation Paper

    537 Words  | 3 Pages

    Minimum wage is the lowest hourly wage that a state is legally required to pay a worker. Supporters of minimum wage believe that it guarantees the workers the ability to provide for themselves and for others. Minimum wage jobs are front desk workers on college campuses, a restaurant hostess, fast food workers, or even a cashier at a grocery store. In the United States, the minimum wage has risen from $1.00 in 1960 to $7.25 in 2015. I viewed two different locations, both of which being Chick-fil-A restaurants.

    Read More

  • Minimum Wage Sociology

    1153 Words  | 5 Pages

    Is it really a good thing to raise the minimum wage to meet the basic need for poor people? Is it the best way to prevent poverty rate and income inequality? Answers must vary from skeptical to comprehensive response depending on whoever answers these questions. Amid a debate on this

    Read More

  • Persuasive Essay On Minimum Wage

    2735 Words  | 11 Pages

    Ever since the Great Depression, the minimum wage has been in effect — in order to reduce poverty and solidify that employees are paid a reasonable sum. Although the minimum wage can be beneficial and advantageous for individuals and to our economy as a whole, it can also be detrimental to our nation’s finances. The federal government should not allow this to pass, but rather they should increase the citizens’ knowledge of the pernicious consequences and complications that will arise with a higher minimum wage, especially one as high as $15 per hour. Some of the resulting conflicts that will occur if this possible raise in the federal minimum wage takes effect are: job loss, business failure, higher consumer prices, and a lower demand for uneducated employees. Although it may appear as if increasing the federal minimum wage will help to lift families out of poverty, in

    Read More

  • Minimum Wage Job Analysis

    125 Words  | 1 Pages

    My career is a welding they make about 20 to 30 an hour. I plan to go to college for a two year course. Then I plan on doing welding jobs and save enough money to open up a shop. If I had a minimum wage job I would not have much money.

    Read More

  • Persuasive Essay On Minimum Wage

    711 Words  | 3 Pages

    Since the Great Depression, there has been a minimum wage in America, but this minimum wage has changed 22 times since the Great Deprnbession. Many people say minimum wage should stay at $7.25 like it has been since 2009. Meanwhile, other people believe that minimum wage should be $15.00 so they can have more money to live comfortably. People think that a higher minimum wage will help, but it will hurt more people than it will help. If America makes the minimum wage $9.00, people will no longer be in poverty and it will make the economy balance out.

    Read More

  • Persuasive Essay: The Minimum Wage Struggle

    717 Words  | 3 Pages

    The Minimum Wage Struggle Money is an essential object to acquire in the society we live in. Various places demand a high monthly rate in order to occupy a premise, along with the stress of utility bills that may not be included. Aside from living costs there are many other factors which must be calculated when budgeting on a day to day basis. Overall, the survival rate tends to increase due to so many responsibilities that need to be upheld, as well as costs being raised. This rise in both the cost of living as well as the need for higher wages proves that the standard of minimum wage needs a major increase.

    Read More

  • Arguments Against Raising Minimum Wage Essay

    636 Words  | 3 Pages

    Many politicians, business owners, and citizens hold fast to the belief that heightening the salary attached to minimum wage positions will yield negative benefits for our society. This opinion is supported by three vital view-points. The first can be found in the news article, “The Argument Against Raising Minimum Wage.” It expresses how the enlargement of this payment will take a toll on employment. The document reasons that if the amount of money employees earn is expanded, companies will be less likely to hire as many workers (Huppke).

    Read More

  • Essay On Increase In Minimum Wage

    704 Words  | 3 Pages

    However, in the long run, many employers will not be able to maintain to stay in business due to the significantly high wages. An increase in minimum wage would cause millions to lose their jobs and put them further in poverty. It would even make it harder for them to obtain jobs after the increase due to the increase of competition in the job market, and most importantly an increase in minimum wage would cause increase in the price level and it will reduce significantly consumption due to the lack of purchasing power that is cause by the higher inflation rate. The minimum wage should not increase because it is unsustainable economically. Another approach of help guide people out of poverty can be a push for an increase in education and knowledge capital instead of continuously increasing the minimum

    Read More

  • Argumentative Essay On Minimum Wage

    1586 Words  | 7 Pages

    1. Introduction In the modest term, a minimum wage is a lawfully authorized minor bound for wages, but the term “lawfully authorised” is unclear, leading too many different kinds of minimum wages institutions (Cunningham et al, 2007:19). It further states that in the most straight forward cases, such as Brazil and Bolivia, the federal government identifies a wage level and all employers in the country must pay at that level or above it (2007:19). Economist have tended to oppose minimum wage on the grounds that they reduce employment , hurting many of those they are supposed to help (the economist:24/11/2012).

    Read More

  • Essay On Should Minimum Wage Be Abolished

    1130 Words  | 5 Pages

    Minimum wage was first established in 1938 by Franklin Delano Roosevelt, in an attempt to stimulate economic growth and create a better standard of living for the lower class. This attempt was fairly successful, but also has many consequences. You may be asking yourself, “how on Earth could setting a limit on how little you can pay someone be bad?” On the surface this statement seems logical, but if we delve deeper we begin to see many negative effects on the implementation of minimum wage. In our nation the minimum wage law almost seems out of place, like it doesn’t quite fit in.

    Read More

More about Minimum Wage Analysis

Open Document