Minimum wage does it work

This would raise the cost of living and create a need for further minimum wage increases. So can international public opinion, by pressuring multinational companies to pay Third World workers wages usually found in more industrialized countries. But proponents of the minimum wage hold that the situation is much more complicated than the model can account for.

According to an Apr. But where you have what we call sweated trades, you have no organisation, no parity of bargaining, the good employer is undercut by the bad, and the bad employer is undercut by the worst It was a blessing for the bank accounts of wealthy industrialists, but a curse for poor, uneducated workers who slaved away in dangerous factory jobs for inhumanely long hours and little pay.

purpose of minimum wage

However, as anyone who lives in a suburb recognizes, there are many people working at jobs that would ordinarily pay minimum wage, but unscrupulous business owners compensate people in cash far under the minimum wage. It's easier and less expensive to have technology take over. Lower unemployment and higher wages increase tax revenues.

India was one of the first developing countries to introduce minimum wage policy in its law in Businesses may freeze new hires, limiting opportunities for recent college graduates and others entering or re-entering the job market.

It was not until the s that the first modern legislative attempts to regulate minimum wages were seen in New Zealand and Australia. The argument against minimum wages is pretty straightforward: minimum wages makes employing workers more expensive, without making workers more valuable.

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The Unintended Consequences Of Raising Minimum Wage To $15