The Effects of a Change in the Minimum Wage Essay -- Economics Workfor

The Effects of a Change in the token(prenominal) plight In 1938, the Fair Labor Standards Act was passed and ever since, the unite States has required that all told firms that do at least $500,000 worth of vocation per year pay their workers a minimum engage (Handy n.pag.). Because it affects so many workers in so many different aspects of the economy, the minimum lease plays a big part in the cost of labor and how firms voltaic pile with those costs. A change in the minimum betroth, which would seemingly affect except workers, can actually be felt sometimes all the counselling down to the consumer, who might final stage up paying for it in the endunless the firm finds another way to pay for the mandatory raise for all its workers, such as a decrease in its workforce or a change in the production process. These changes the consumer might not noticeably feel. A change in the minimum wage has several short-term and long-term effects on the economy that can be either ben eficial or devastating to society at large.The arguments for and against the minimum wage have been ongoing. On one hand, its simply a planning and demand issue. As prices (or wages) rise, the demand for that product (or labor) decreasesin other words, employers leave alone simply stop or slow down their hiring. If the minimum wage increases too much, then it could even force some smaller firms come on of business. Then even more people will be bring out of work. On the other hand, better paid employees could feel more motivating to increase their productivity. And increase in a companys productivity could be high enough that, in order to keep up supply, it might need to hire even more employees. In this case, raising the minimum wage has increased employment.So whos right? virtually all studies of minimum wage ef... ...Handy Reference Guide. ESA/WHD Wage hour Division Home Page. U.S. Department of Labor. 21 April 2001 .Neumark, David and William Wascher. Employment Effects of marginal and Subminimum Wages Panel Data on State Minimum Wage Laws. Industrial & Labor Relations Review Oct 1992 55. EBSCOhost MasterFILE Premier. 22 April 2001 .Partridge, Mark D. and Jamie S. Partridge. Do Minimum Wage Hikes Reduce Employment? State-Level Evidence from the Low-Wage Retail Sector. ledger of Labor Research Summer 1999 393. EBSCOhost MasterFILE Premier. 22 April 2001 .Wimmer, Bradley S. The Minimum Wage and productiveness Differentials. Journal of Labor Research Fall 2000 649. EBSCOhost MasterFILE Premier. 22 April 2001 .