Answer to Question #175168 in Economics for Vivianne

Question

Provide a plausible explanation as to why an increase in the minimum wage might not have any impact on unemployment.

Answer 1

As the minimum wage rises and work becomes more attractive, labor turnover rates and absenteeism tend to decline. Moreover, the sacrifice associated with the consequences of losing a job rises; so, arguably, workers are inclined to work a bit harder and need less monitoring.