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Minimum Wage - Essay Example

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Name of author: Minimum Wage Minimum wage means the lowest salary an employer has to pay to his employees daily, monthly or yearly. In other words minimum wage prevents employers legally from lowering the salary of the employees below a particular benchmark…
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Minimum Wage
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Download file to see previous pages Critics are of the view that minimum wage forces employers to appoint only skilled workers and therefore employees with lesser skills may struggle to get employment. This paper argues in favour of minimum wage after analysing both the sides of the issue. “The vast majority of economists believe the minimum wage law costs the economy thousands of jobs”(Messerli). In their opinion, enforcement of minimum wage will decrease the demand for workers. They explain their argument based on the supply and demand theory of economics. When salary goes up, supply of workers will also goes up and thereby the demand for the workers will geos down. In other words, when supply increases, demand decreases. The above theory might be true in theoretical terms, but in practical terms, it may not be so. It should be noted that majorities of the western countries are outsourcing their jobs to India like Asian countries at present because of the labour shortage. It should be noted that in countries like America and Britain, an ordinary worker is getting salaries, three to four times more than that an Indian worker is getting in his country. In other words, even though the wages are high, supply of labour force is not increasing in countries like America and Britain. On the other hand, in India like countries even though the wages are low, excess of supply of labour is in place. ...
Part-time work and full time work should be separated from each other. Minimum wage for part time work need not be the same as that of the full time. Authorities can prescribe separate norms of minimum wage with respect to part time and full time work. Moreover, separate minimum wage norms can be enforced with respect to the qualification and experience of the employees. “Abolishing the minimum wage will allow businesses to achieve greater efficiency and lower prices. Anytime you give businesses more flexibility, you will increase efficiency and lower prices” (Messerli). It is an accepted fact that only a satisfied worker will try to deliver more than 100% of his efficiency. In other words, workers who struggle to get a decent salary may not be fully committed to the organization. It is better for an organization to have more committed workers to increase its efficiency and productivity rather than having a huge workforce of unskilled or cheaper labours. Salary is the major motivating factor for the employees and therefore minimum wage will definitely motivate the workers more and thereby the organization will be benefitted. “Adults who currently work for minimum wage are likely to lose jobs to teenagers who will work for much less. Many adults trying to make a living are forced to work minimum wage jobs” (Messerli). Employers may exploit the workers in the absence of a minimum wage law. They will try to terminate experienced workers even without any reasons, for appointing fresh workers in order to reduce their employee wage expenditure. Thus, even experienced employees will be forced to work under tremendous pressure if minimum wage law is not implemented. In the absence of minimum law, business will take undue advantages in the form of ...Download file to see next pagesRead More
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