Answer to Question #242760 in Microeconomics for Yasuri

Question

The government is considering imposing a minimum wage for unskilled workers. What are the effects of this policy in the labour market? To what extent does the policy achieve its goals

Answer 1

This will be decline within the labor market. Most of the unskilled labor will be forced to look for other ways to meet their needs. This may force such workers to quit their jobs and engage in other activities, which will be a decline within the labor market.