The Pros And Cons Of National Minimum Wage

1326 Words6 Pages
Next, are jobs low-paid because workers are low skilled and have low productivity? The fact that today’s low-wage workers in the US are more educated, with 41% having at least some college qualifications, up from 29% in 2000 implied that low-paid jobs are not attributed to low-skilled or low productivity (The New York times, March 16, 2014; Bosch, 2009).
Finally, the question about whether raising wages would lead to job loss has two schools of thought which we re-visit in the later section.
In the next section, we would explore the policy interventions of standard setting and programmes to help firms. The three institutions for standard settings are National Minimum Wage (NMW), collective bargaining and welfare institutions.
NMW can be used as an instrument for shaping socio-economic outcomes like to address low pay and using pay increment to push for skill improvement and career progression (Grimshaw, 2011; Bosch, 2009). As such, countries with higher NMW relative to average earnings generally have a lower incidence of low-wage work than countries with low NMW (Grimshaw, 2011).
While NMW is typically framed in terms of the impact on wages and employment of directly affected employees, a broader view suggests that more at stake. Opponents argued that higher wage would lead to job loss as firms would lay off employees that whose productivity falls below standard, whereas, advocates argue that the magnitude of job loss is small and the gains accrued to those remaining in the

More about The Pros And Cons Of National Minimum Wage

Open Document