Contact Us
Sign In / Sign Up for FREE
Go to advanced search...

Minimum Wage - Essay Example

Comments (0) Cite this document
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…
Download full paperFile format: .doc, available for editing
GRAB THE BEST PAPER98.8% of users find it useful
Minimum Wage
Read TextPreview

Extract of sample "Minimum Wage"

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
Cite this document
  • APA
  • MLA
(“Minimum Wage Essay Example | Topics and Well Written Essays - 1000 words”, n.d.)
Retrieved from
(Minimum Wage Essay Example | Topics and Well Written Essays - 1000 Words)
“Minimum Wage Essay Example | Topics and Well Written Essays - 1000 Words”, n.d.
  • Cited: 0 times
Comments (0)
Click to create a comment or rate a document


The Basic Criticism of Wootton on the Existing Theories of Wage Determination

...Introduction Setting up an effective wage policy is one of the most challenging tasks a government has to undertake because it requires a lot of balancing acts to manage the different aspects of the policy setting. The existing theories of economics emphasize that the determination of wage rates is largely based on the self interest and the bargaining power. The higher both the elements more wage differentials may be experienced. However, the social norms of a society also tend to shape the wage determination. The earlier theoretical attempts outlined the need for having the social dimension to the overall process of wage setting and as such advocated against the demand and supply factors as the only contributors towards determining...
10 Pages(2500 words)Literature review

The Minimum Wage Law

...e risk of another Great Depression. Social activists maintain that the law is needed to prevent workers at the lowest end of the pay scale from being exploited by greedy businesses and heartless corporations. Economists argue as to whether the law might reduce employment and actually be counter-productive in regards to the needs of the poor. Politicians seek to ideologically justify the law to small businesses that must pay part time workers or teenagers a scale above what the market would demand, and convince the consumer that the law is not inflationary. The purpose of this paper is to examine the various issues surrounding the Minimum Wage Law and make a determination on the best approach to manage the low end wage earners, while...
15 Pages(3750 words)Research Paper

The Issue of Minimum Wage

.... In United Kingdom, although the relevant legislation has sustained a number of significant alterations since the approval of Trade Board Acts of 1918, the focus has persisted to be on offering lowest wage legislation in those manufacturing where effectual trade union agency is wanting and wages are deemed to be insufficiently or aggreably low2. The study intends to discuss minimum wage regulation in United Kingdom and compare that with respect to United States. Economists are enthralled by lowest wage since there are well-built hypothetical predictions about the course of the result of the lowest wage on employment, and moderately...
11 Pages(2750 words)Case Study

Real Wage and the Classical, Keynesian, and New Keynesian Perspectives

...Real wage and the ical, Keynesian, and New Keynesian perspectives The short-run fluctuations in output and employment constitute the business cycle (Mankiw, 2003, p. 238). Although Blanchard (2003, p. 519-521) talked of a political business cycle, Mankiw (2003, p. 238) clarifies that although the term "business cycle" suggest that economic fluctuations are predictable, they are actually not. Over a business cycle, real wage is expected to be acyclical in the Classical model, countercyclical in the Keynesian model, and procyclical in the New Keynesian model. Acyclical, countercyclical, and procyclical predictions are likely rooted in the school of thoughts assumptions on the economic agents at work. A classical model assumes that economic...
8 Pages(2000 words)Literature review

The Concept of the Minimum Wage

... in the minimum wages has varied implications on the firms and on the employment of the workers, especially the unskilled and the teen workers. The reason for this is explained by economic theory. Economic theory argues that as the minimum wage is increases; the least wage that is paid by the firm to the worker is increased. As a consequence, the cost of the production of the firm increases and, as Kosters (1996) points out (see chart 1 and chart 2 in Appendix). Since profit maximization and cost minimization are two objectives that the firms want to achieve, the firms concentrate on reducing their costs because of the increase in the minimum wages. The easiest way of the firms in such a case is to fire some of its workers and, as a result...
6 Pages(1500 words)Essay

Features of Minimum Efficient Scale in Economics

...Minimum Efficient Scale Submitted by: XXXXXXX Number: XXXXXXXX XXXXXXXX XXXXXXX XXXXXXX of XXXXXXXX Date of Submission: XX – XX – 2010 Number of Words: XXXX (Excluding References) Introduction: Economies of scale are an essential aspect of every business and various studies over the past show that most companies, specifically those in the manufacturing industry show high levels of economies of scale. Researches by C F Pratten in 1980s and also the group of advisors of the European Commission in 1997 have both found a number of evidences that confirm the same. This paper aims at understanding a major concept that relates to the economies of scale and brings out the extent of economies of scale within a firm. This concept is referred...
7 Pages(1750 words)Coursework

Segregation and the Racial Wage Gap of Economics

...Segregation and the Racial Wage Gap of Economics of race and gender Introduction “Gender equality and women’s empowerment are human rights that lie at the heart of development and the achievement of the Millennium Development Goals (MDG)” (UNDP, “Women’s Empowerment”). Further United Nations observes that women lag behind men in access to land, credit, and decent jobs, even though a growing body of research shows that enhancing woman’s economic options boosts national economies (UN Women, “Focus Areas”). Universal Declaration of Human Rights made a landmark declaration on 10 December 1948 reaffirming that “all human beings are born free and equal in dignity and rights and that everyone is entitled to all the rights and freedoms – without...
8 Pages(2000 words)Research Paper

Minimum Wages during Economic Downturns

The effects of changes in the minimum wage are often tremendous and impact differently to the employers. This paper presents the resulting effects of an increase of minimum wage to employers in the American economy (Papps, Pg. 46).
The main intention of a minimum wage is that of boosting families with low income out of poverty. This concept has however been proved to be wrong because an increase in the wage has not changed the lives of the workers. It has served however to enable them to increase their purchasing power and adjust to their unresolved needs and not to alleviate them from poverty. Unfortunately, apart from all these good intentions, there are several adverse effects that have been associated with the imposition...
6 Pages(1500 words)Case Study

Gender Wage Gap in the United States

...Gender Wage Gap Introduction: In this modern era, there is a concept that both men and women are equal in respect of their professional life and responsibilities. This means that they can equally take the workload and then manage it. However, the worst situation is that most of the times women do not get equal compensation for their duties and work load. In most of the US companies, it has been noticed that there is a significant difference between the pay packages of the women and men while the fact remains constant that they are working on same position. The gender pay gap is used to measure the making or earning differences between male and female in salaried service in the industry or labor market or it is the ratio of the median wages...
10 Pages(2500 words)Literature review

Should the Federal Minimum Wage Be Raised

... For over a century, the minimum wage remains a critical component of public policy. Neumark and Wascher (2008) trace its back to the 1890s in Australia and New Zealand. It aimed at ensuring fair pay for work done. In the United States, the provisions of the federal minimum wage are enshrined in the Fair Labor Standards Act, FLSA. With its history traced back to 1938 when applied to Virgin Islands and Puerto Rico, the FLSA has undergone numerous amendments to what it is today, covering the whole of the United States. It aims at helping families attain self-sufficiency, thus targeting low-paid occupations. Following amendments to its 2008 predecessor, the 2009 amendments set the federal minimum age at $7.25 per hour as documented...
8 Pages(2000 words)Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.

Let us find you another Essay on topic Minimum Wage for FREE!

Contact Us