Purchase Solution

Is minimum wage legislation bad for on-the-job training?

Not what you're looking for?

Ask Custom Question

Is minimum wage legislation bad for on-the-job training?

It has been argued that the minimum wage prevents workers from investing in on-the-job training and discourages employers from providing specific training to low-income workers. Why would the minimum wage have an adverse effect on human capital accumulation for low-income workers?

Purchase this Solution
Solution Preview

See the attached file, where MRP is the marginal revenue product. This is the additional revenue generated by the employment of one additional input. MRP is found by dividing the change in total revenue by the change in the variable input or by multiplying marginal physical product by marginal revenue. Rather than stating productivity of an input in terms of the physical quantity of production, marginal revenue product states productivity in terms of the revenue generated.

Suppose, for example, that a worker contributes five ...

Purchase this Solution
Free BrainMass Quizzes
Economic Issues and Concepts

This quiz provides a review of the basic microeconomic concepts. Students can test their understanding of major economic issues.

Pricing Strategies

Discussion about various pricing techniques of profit-seeking firms.

Elementary Microeconomics

This quiz reviews the basic concept of supply and demand analysis.

Economics, Basic Concepts, Demand-Supply-Equilibrium

The quiz tests the basic concepts of demand, supply, and equilibrium in a free market.

Basics of Economics

Quiz will help you to review some basics of microeconomics and macroeconomics which are often not understood.

View More Free Quizzes
Related BrainMass Solutions

  • Higher Minimum Wage to Reduce Poverty in the US

    It would tend to decrease school enrollment, increase the proportion of teenagers who are neither in school nor working, and reduce the availability of formal on-the-job training for young workers.

  • marginal productivity theory

    340479 Minimum wage legislation Minimum wage legislation requires most firms to pay workers no less than the legislated minimum wage per hour.

  • Ethics of Minimum Wage

    Anyone who holds a job is concerned about minimum wage. Employers tend to oppose minimum wage increase, whereas employees, of course, advocate for them. So, what ethical issues arise from the issue of minimum wage?

  • Minimum Wages

    When minimum wage is raised, lower jobs are demanded so there are job losses and there is wage increase because the higher minimum wages are increased by the federal government.

  • Elasticity and the Minimum Wage...

    434282 Elasticity and the Minimum Wage... What are your thoughts about minimum wage legislation? What kind of a price-control policy is this? Who gains? Who loses? Are there alternatives to this legislation for achieving the same policy objectives?

  • Business Compensation and Benefits Based on Employees Worth

    Companies must adhere to their state minimum wage law unless the exclusion on job positions / industries indicates that federal minimum wage states a higher rate.

  • current event

    The city of Seattle has proposed and passed legislation for raising the minimum wage of workers in the city to $15 a hour, which is by far the highest for any city in the nation.

  • International Business Ethics: Example Problem

    It protects workers from being Overworked and provides for a livable wage. "This makes the minimum wage the prime instrument for maintaining labor's standard of living" (United Nations, nd).

  • Roles of State and Federal governments in employment regulation

    In general, the states have acted to make the laws addressed by the federal regulation more strict. The one legislation that I intend to discuss is the Fair Minimum Wage Act of 2007, .

View More Related Solutions