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Equilibrium wage price in this case, is the price of labour in which the supply is equal to the demand. The thesis statement for this paper is that the minimum wage, which varies from time to time, has great impact to the labour market and it is the same throughout the nation.
The topic studied in this research paper is very important to the economists. It serves the purpose of exploring the minimum wage as a legal price in depth. The topic has a great impact to different economic actors. One of its impacts is that it enables policy makers to determine the gains and losses that should be expected from a policy to raise minimum wage (Welch & Welch, 2009). It also enables the human rights advocates to know the extent to which they can force the government to increase minimum wage. For the government, it could enable it to realize how it can control its economy using the minimum wage.
The first major point in this research paper was that the minimum wage has a great impact to the labour market. As Mankiw (1998) indicates, minimum wage raises the income of the working people but increases unemployment. In terms of demand as supply curve for labor, we can say that if the minimum wage is above the equilibrium price for labor, employers will employ fewer laborers. As a result, there will be an increase in unemployment. However, if the minimum wage is below the equilibrium price for labor, it will not have any effect to the levels of unemployment.
Another major point in this research was that minimum wage as a legal price has been changing from time to time. Currently, a proposal was made to increase minimum wage and it has already been implemented by some states (Brux, 2007). This was an effort to keep the minimum wage in-line with the economic situation in the country. The economic situation in the country has been worsening with inflation increasing on annual basis. Therefore, the value of money declined and hence there was a need to
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This will be followed by an assessment of the history of minimum wage with an emphasis on the United States. The paper will go further to assess the effects of a revision of the minimum wage to employers then to employees. This will lead to an assessment of the positive effects of minimum wage as well as the negative effects of minimum wage.
According to the paper the rising numbers of divorces have created this community of women who are eventually mother of a child or children and they prefer to leave alone with their children. The wages of these women must be revised and the legal protections must be given to these community. The single mothers are facing many financial and physical problems for taking too much pressure and tresses.
The state or the government in collaboration with all the relevant agencies work towards a common goal of ensuring that social, economic and political welfare remains vibrant, and tailored towards growth and development. In this pursuit, people become the central focus, given the fact that the people make up the social context in an economy, state or country.
Minimum wages as a legal price is a policy designed to control the least amount that an employee can be paid for providing labor to the employer. The amount could sometimes be different from the equilibrium price in the demand and supply curve for
On 19th November 2012, the Budget Committee allowed the bill to advance to the next stage by a 7-6 vote margin. However, the bill awaits approval by the Senate to become a law. The bill is designed to increase the minimum wage rate beginning March 1 and
gone beyond and imposed a living wage, which allows people to make payments for necessities and give them a chance to own enough money to live beyond the poverty level. Nevertheless, how can working people still live below the poverty level? Or does this depend on the nature of
Minimum wage is usually enforced by law after a lot of consultation and deliberation has been done with relevant stakeholders and partners (Brown, Gilroy & Kohen, 1982). The question of whether to raise the minimum
The main aim is therefore is to shield workers off exploitation of employers. The practice of setting minimum wage is mostly established by government-employer contracts or simply through government legislation. Very many