Minimum Benefits Of Minimum Wages - 1399 Words

Minimum wages are described as â€Å"the minimum amount of remuneration that an employer is required to pay wage earners for the work/services performed during a given tenure, which cannot be reduced by collective agreement or an individual contract†. Minimum wages can be established by statute, competent decision authority, a wage board, a wage council, or by industrial or labour courts. The significance of minimum wages is to shield workers against disproportionately low pay. They help safeguard an equitable and just share of the fruits of progress to all, and a minimum living wage to all who are employed and in need of such protection. Minimum wages can also be a part of a policy to overcome poverty and reduce inequality, including those†¦show more content†¦This potential loss decreases both firms’ surplus and workers’ surplus. The increase in job search will waste resources and time which contributes to the inefficiency of minimum wage. Dead-weight loss highlights the loss in possible employment, which could have been achieved by labour market approaching equilibrium. Free-Market With Minimum-wage Case 1 With Minimum-wage Case 2 Consumer Surplus 1-2-3 1 1 Producer Surplus 8-9 2-3-4-8-9 2-9 Government Supports - - LS-LD Cost of Government Purchase - - 3-4-5-6-7 Total Surplus 1-2-3-8-9 1-2-9 1-2-9 Dead-weight Loss - 3-8 3-5-6-7-8 In both cases of minimum wage, there is an overall increase in labour supply and an overall reduction in demand of labour. Hence, implementing or increasing minimum wage results in loss of jobs theoretically. However, it also relies on the country s economic activity which may or may not result in loss of jobs. Additionally, case 2 reflects the scenario where the government delivers unemployment benefits to its unemployed citizens. In this case the dead-weight loss is catered by the government which in return puts a great deal of financial burden on the government. Observing with the perspective of the general population - Improved minimum standard of living – It facilitates the lowest paid strata of the society to desire for a better standard of living. - Incentive to work – It encourages unemployed population to find job, due of higher returns for theirShow MoreRelatedMinimum Benefits Of Minimum Wage1359 Words   |  6 PagesMinimum wage is described as  Ã¢â‚¬Å"the minimum amount of remuneration that an employer is required to pay wage earners for the work/services performed during a given tenure, which cannot be reduced by collective agreement or an individual contract†. Minimum wage can be established by statute, competent decision authority, a wage board, a wage council, or by industrial or labour courts.   The significance of minimum wage is to shield workers against disproportionately low pay. They help safeguard an equitableRead MoreBenefits Of Minimum Wage1014 Words   |  5 Pages Minimum wage is a struggle for many Americans and I believe it needs to be raised. The minimum wage of the United States is $7.25 an hour. It is a rate that isn’t letting many Americans live life comfortably. If the minimum wage was changed even a merely $3.75 it would change people’s lives and will let many people get by. The minimum wage of $7.25 has stayed the same since 2009 and there hasn’t been any effort by the government to change it. Many states have increased their minimum wage, but IRead MoreThe And Benefits Of A Minimum Wage2730 Words   |  11 Pages The Affects and Advantages of a Minimum Wage 180 Hour 3 Shakopee High School A common saying known throughout the business world, â€Å"time is money†, which applies to every aspect of every work place, yet a something is missing from that saying. The missing element is just how much your time is worth. Recently with new raises in minimum wage the United States is taking steps to come more closely to the equilibrium of how much employees should be paid. With the many, many issues inRead MoreThe Benefits Of The Minimum Wage2000 Words   |  8 PagesThe advantages of the Minimum wage law outweigh its disadvantages. Introduction Minimum wage law is the lowest salary that employers need to pay to workers and United Kingdom legislate the minimum wage law in 1998. It is a way to improve the living condition of those low-income workers by raising their wage and also assure they can afford their daily consumption. The rate of the minimum wage is not fixed, it will increases as the living rate increases. The idea of minimum wage law is usually regardedRead MoreBenefits And Benefits Of Minimum Wage1568 Words   |  7 Pagespoverty wages and provide few if any benefits (Low, 2015). The lowest income bracket has been getting increasingly poorer and since 1968, the real value of the minimum wage has progressively declined (Dietrich, 2004). Most low-wage employers do not offer health insurance to their employees and if they do, premiums are too high for employees to afford. Sick pay and retirement benefits are not likely to exist in these types of jobs. Due to a lack of training or continuing education benefits, most workersRead MoreThe Benefits Of Raising The Minimum Wage1656 Words   |  7 Pagesto be should the minimum wage be raised or should it be lowered or eliminated altogether. From where I stand minimum wage should be raised. Everyone is more successful when people are paid a living wage. Changes to the minimum wage would strengthen the economy and business, Lift Americans out of poverty, and will be unlikely to significantly impact prices. The only way to grow the economy in a way that benefits 90% is to change the structure of the economy. Paying people a fair wage is a sign of respectRead MoreBenefits Of Minimum Wage Law990 Words   |  4 Pageshave a law in order to complete the bare minimum to afford a decent living condition, food for their families and even to put on decent clothes to keep themselves warm. The minimum wage law was set so employees have a decent living wage and are not in complete ruins after working rough conditions. There are many benefits towards the minimum wage law that was set in 1938 by President Roosevelt. It helps laborers who work in rough rugged conditions have a minimum set salary and have them able to affordRead MoreThe Benefits Of Raising The Minimum Wage706 Words   |  3 Pages Minimum wage is a difficult number to decide on because it affects different income earning citizens in different ways. According to Principles of Microeconomics, by N. Gregory Mankiw, minimum wage is a law that establishes the lowest price for labor that and employer may pay (Mankiw 6-1b). Currently, the minimum wage in the United States is $7.25 per hour. For many years politicians and citizens have argued on what should be the minimum wage that would benefit the economy and society in generalRead MoreBenefits And Disadvantages Of Minimum Wage1957 Words   |  8 Pagesto pay wages inferior to a certain threshold. This activity has important effects on the labor market and even on the global economy. The average wage levels influence not only the rates of employment, and the living conditions of part of the payroll, also a country’s level of education, how much outsourcing is done to countries where (minimum) wages are lower, and even market prices and therefore rates of in flation. Around the world, and for more than a century now, â€Å"since the first minimum wageRead MoreBenefits Of Raising Minimum Wage1291 Words   |  6 Pages In recent years, the demand for an increased minimum wage has erupted across the nation. During the ongoing debate, a few states, cities, counties, and companies have taken the initiative to raise the minimum wage of $7.25 per hour to the varying wages of $7.50-$11.50 per hour. According the United States Labor Department, 29 states and the District of Columbia pay above the minimum federal level of $7.25 per hour. The raising of the minimum wage has numerous supporters; however, there are individuals