Answer to Question #118954 in Microeconomics for Ashraful islam nahid

Question

What are the effects of the minimum wage?

Answer 1

The following are effects of minimum wages;

1. It reduces other job benefits when you are payed minimum amount as your salary.
2. It can create unemployment because some low wage workers will be unable to find work.
3. It reduces inequality.
4. It increases the standards of living workers.
5. It reduces poverty in poor families.