Would you expect an increase in a minimum wage to help or hurt Essay Example for Free

Would you expect an increase in a minimum wage to help or injustice EssayIncreasing the minimum statutory wage has much far-reaching implications . Research indicate that this has a study impact on the business, employment and labor market. Studies done on its impact show that the increase real probably leads to reduction of employment more so for the young and unskilled who typically get move in lower income caprioles. So if the increase in minimum wage is not beneficial to the planetary economy, is it helpful to the labor force it ought to benefit?On a positive note or kind of short term the increase allow for mean that the workers ordain have an increased disposable income accordingly they will be in a position to meet their needs more comfortably than they did onwards the increase. On the other hand the increase is just minimal therefore it adds very little to the income of the workers in general. This method has been found to be an ineffective tool for poverty re duction due to such electronegative impacts which mainly affect the people it ought to benefit.(Neumark, D and Wascher, W 1992) An increase in minimum wage forces the employers to do in certain ways, studies indicate that when minimum wages increase the employers often tend to reduce the periphery benefits for the workers and at the same(p) time reduce trainings for the employees. They embark on a cost cutting measures so as to fill the gap created by the funds which go towards the increment. Such a move will affect the worker as he or she will enjoy less benefits.In a matter of fact they might continue taking home the same amount of money or even less due to reduction or withdrawal of benefits. The cost cutting measures may deny a worker a chance to progress in a career when on job training as a benefit is done away with. On the same note to arrange the business spending the employer may even end up simplification the hours of work further reducing the wage. (Neumark, D and Was cher, W 1992)An increase in the minimum statutory wage may be a good thing in the short term, but it has a negative impact to the worker since the employers will have to act in a certain way to ensure that they continue to enjoy the same profits margin as they did before. Reference Neumark, D and Wascher, W (1992) Employment effects of minimum and mill minimum wages Panel Data on State Wage Laws, Industrial and Labor transaction Review, vol 46