As explained in Chapter 6, a minimum-wage law distorts the market for low-wage labor. To reduce this distortion, some economists advocate a two-tiered minimum-wage system, with a regular minimum wage for adult workers and a lower, 'subminimum' wage for teenage workers. Give two reasons a single minimum wage might distort the labor market for teenage workers more than it would the market for adult workers.© BrainMass Inc. brainmass.com December 20, 2018, 7:53 am ad1c9bdddf
Minimum wage laws distort the market by increasing the number of workers and decreasing the number of jobs available. Teenagers have a low marginal product, ...
Minimum wage labor market distortions for teenage workers.