Essays on Raising Minimum Wage

The purpose of this memo is to give an overview of the theory of labor economics. Firstly, it will highlight the interaction of supply, demand, and prices of labor/wages. This is followed by a brief explanation of the benefits and costs associated with an increase in the minimum wage. Next, recommendations will be made on the way forward for Michigan State. The recommendations given will be supported by reasons. Finally, policies will be suggested on what the state should do to guide regulation of wages. In labor economic theory, the price of labor affect and is also affected by ...

A minimum wage is the minimum amount of remuneration which may legally be paid to workers. In other words, it is the minimum price below which people are not willing to sell their labor as it will be illegal. In the USA the minimum wage is determined by a body of laws stated in federal, state, and local statutes. Such legislation is introduced nowadays in almost 90 % of all countries. Other countries, which have no minimum wage law, such as Denmark, Sweden, Austria etc., rely on binding collective bargaining regarding this issue. The minimum wage has an impact on ...

The term minimum wage rate refers to the minimum amount of compensation that an employee receives after performing a particular task. It is prudent to note that the minimum wage rate is established by either government legislation or the contract. This implies that it is illegal or unlawful to pay employees an amount that is less than the minimum wage rate that has been set by the government. The subject about the minimum wage rate has been debated for a long period of time. Some people argue that the minimum wage rate should be increased while others argue otherwise. Even different ...