According to the main findings of economic theory and empirical research studies in the previous 70 years, an increase in minimum wage tends to lower employment. The higher the minimum wage in relation to the competitive-market wage levels, the bigger the loss of employment that…
Download file to see previous pages...
However, latest research findings indicate different outcomes. They reveal that increasing the minimum wage does not seem to lower employment. This has challenged the typical model of the effect increase in minimum wage. An increasing set of academic papers show that increase in minimum wage does not notably decrease employment among fast-food workers and teens.
For instance, following a 25 percent increase in minimum wage in San Jose, California, there was no result in the area’s fast food franchise which led to suspension of employment. According to an article in Wall Street Journal, a ballot initiative in 2012 which was started by San Jose State University students led to a 2 dollar increase in minimum wage in the city. It was expected that this would result into job losses. However, data reveals that this was not the case (Morath 1).
Employment in the fast-food industry increased after higher wages were in place. By the beginning of 2014, the pace of increase in employment in San Jose region was still more than the improvement in the whole state of California. Almost half of the minimum wage employees are hired in food service (Morath 1).
San Jose city accounts for approximately half the population in the metro region, which comprises of Santa Clara and Sunnyvale. The minimum wage rate is said to be $8 in those neighboring cities. These results are far from conclusive. They still appear to fit researches that established that minimum wage increases at a local area have not resulted in notable job losses in fast-food restaurants (Morath 1).
Prior researches in contrast to the recent findings concluded that 10% rise in the minimum wage decreased teen employment by 1 to 3 percent. The reasons that are offered for these new controversial findings consist of problematic methodologies, poor data and the likelihood of monopoly power. Employers
...Download file to see next pagesRead More
Cite this document
(“Wall street Journal opinion Article Essay Example | Topics and Well Written Essays - 750 words”, n.d.)
Retrieved from https://studentshare.org/macro-microeconomics/1638994-wall-street-journal-opinion-article
(Wall Street Journal Opinion Article Essay Example | Topics and Well Written Essays - 750 Words)
“Wall Street Journal Opinion Article Essay Example | Topics and Well Written Essays - 750 Words”, n.d. https://studentshare.org/macro-microeconomics/1638994-wall-street-journal-opinion-article.
Economic outcomes strappingly depend on policy choices. Policy decisions do not depend on social planners who explain the extension of social well-being as their choices. Many economic models that were made in the past failed to elucidate what is happening in the real world because they ignore politics.
For several decades, looking at another human being in a worthless way has been conventional. Nevertheless, it is only recently that human beings have taken the trouble to look at discrimination as a problem in a number of areas. There is no society which has been spared from the menace of discrimination.
Yet, it is considered as the weakest rebound since WW-II. Economic growth is as low as 2.25% and unemployment is still higher than where it should be by this time. To see that it means to American, a closer look as few important factor is taken. Unemployment has been steadily coming down for the past three years.
While for teens and young adults big discounts may not sound financially significant, a 40% markdown on the prices of goods is surely an early Christmas bonus for mothers who are trying to fit the paycheck for the rest of the week. But regardless of how one would view discounts, the fact is you did not really save anything.
Recently China has faced slowdown due to economic slowdown in the world following the crisis of the global economic slowdown. Still the country has achieved GDP growth rate of more than 6 percent in the years following the crisis. This report will take a look at the slowdown of China and the causes of such slowdown.
This came after the economy of China was presumed not to grow beyond eight percent of their quarter due to the drawback that had occurred in the trade world. This consequently led investors to withdraw from engaging