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 minimumwage for adult workers and a lower, 'subminimum' wage for teenage workers. Give two reasons a single minimumwage might distort the lab
The minimumwage is used by governments as a poverty fighting measure. The use of such means of creating equity among the masses does not always result in the desired outcome. The use of the minimumwage is explored and alternatives provided.
The attached file contains observations of the American minimumwage during each of the years from 1950 through 2004. Has the minimumwage been growing at roughly a constant rate over this period? Use simple linear regression analysis to address this question. Explain your results.
Please review the attached.
1. What is the situation in the 2009 NYC labor market?
a. Labor Surplus
b. Labor Shortage
2. What percentage of jobs would be lost if the min wage were increased to 9.50?
The implementing of minimumwage is similar to the creating of a price floor for a product or service, but in setting a minimumwage there is an important factor, which is the market equilibrium rate or ideal per hour wage for unskilled labor.
MinimumWage or Living Wage
To what extent is a company obligated to pay a wage that guarantees the right to the pursuit of happiness for the individual and his or her family? Is a living wage a better measure of minimumwage?
With almost all clothing, electronics, cast metal items and computer problem calls now made off shore, do you think that one day, every employee in the world will be making the same minimumwage, adjusted for the exchange rate? Why?