Answer to Question #200157 in Microeconomics for Chanicke Barry

Question

Define what a national minimum wage means through analysing its implications for the economy

Answer 1

National minimum wage the lowest amount that employers can legally pay employees in a particular country.The minimum wage increases the wages of the lowest paid. These workers will have increased income and will reduce relative poverty. Increases the incentives to accept a job. With a minimum wages, there is a bigger difference between the level of benefits and the income from employment.