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If a business has to pay more for each person, there are less people that they can afford to hire. This leads to greater unemployment.
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A mandated minimum wage would require employers to pay more for low-skilled or inexperienced workers than they are worth to employers in terms of productivity - the only terms that matter.
Rather than employ any low skill worker, I will employ mid- or high-skill workers at market wages, leaving the young, inexperienced, and under educated unemployed. In the US that is EXACTLY what happens: young workers, especially Black youth are unemployable at minimum wage
What else can I help you with?
Is this a positive statement or normative statement The minimum wage creates unemployment among young and unskilled workers?
It is a positive statement.
How is a fair wage determined?
There is no formula to determine minimum wage. Minimum wage is based on a few things such as inflation, unemployment rate, and cost of living. The main person who determines minimum wage is mainly determined by the sponsor of the wage bill.
Minimum wage in the 1920s?
what was the minimum wage in the 1920
What happens when government raises the minimum wage above market levels?
When the minimum wage is above the market levels, people undergo loss of work as companies tend to hire less. This in turn affects the economy of the country and the unemployment rate shoots up.
What is the minimum wage in Idaho?
The minimum wage in the state of Idaho is $7.25 an hour, the same as the federal minimum wage. This minimum wage was enacted in 2007.
What minimum wage and unemployment insurance are most directly a result of?
lobbying - apex
The minimum wage and unemployment insurance are most directy a result?
lobbying - apex
If the minimum wage is set above the market wage the?
Unemployment will rise.
How does a union influence minimum wage and unemployment insurance?
An increase in the minimum wage would mean that employers would have to pay some employees more. If the company is already struggling to make ends meet, an increase in the minimum wage might result in layoffs because the company is unable to pay the new required wage rate.
Who is responsible for the minimum wage and unemployment in US?
george w. bush
What minimum wage and unemployment insurance are most directly a result?
Minimum wage and unemployment insurance are primarily a result of labor market regulations aimed at protecting workers' rights and ensuring a basic standard of living. Minimum wage laws establish a baseline income for employees, helping to reduce poverty and inequality. Unemployment insurance provides financial support to individuals who have lost their jobs, aiding economic stability and allowing workers time to search for new employment. These policies collectively aim to promote fair labor practices and economic security.
Who is impacted most from minimum wage laws?
Minimum wage laws affect employees who earn the minimum wage as well as business who pay the minimum wage to its employees. Increasing the minimum wage improves the quality of life for those who earn at or near the minimum wage, however, it can cause businesses to hire less employees or reduce staffing levels. That leads to higher unemployment for unskilled workers, who are the people that generally earn minimum wage. Those who earn minimum wage are probably most directly impacted by minimum wage laws. The laws also change the behavior of businesses by affecting staffing levels or passing cost increases on to their customers.
Would raising the minimum wage lower crime?
Econ 101. (simplified version) Raising the minimum wage rate would more likely than not, increase the crime rate. By increasing the minimum wage, employers will be able to hire fewer workers. At the macro level, fewer workers hired will net an increase in unemployment rates. As unemployment rates increase, so too do crime rates.
How does the minimum wage being a price floor cause a surplus of workers looking for jobs?
Because some employers are unwilling or unable to afford to pay the minimum wage and therefore do not hire and reduce the unemployment line.
Is this a positive statement or normative statement The minimum wage creates unemployment among young and unskilled workers?
It is a positive statement.
How does minimum wage impact the labor market?
it might result in a surplus of supply
How is a fair wage determined?
There is no formula to determine minimum wage. Minimum wage is based on a few things such as inflation, unemployment rate, and cost of living. The main person who determines minimum wage is mainly determined by the sponsor of the wage bill.
