Posted: July 25th, 2022

The Minimum Wage Should Be Increased

The Topic is
“The minimum wage should be increased.”
Need to Explains why?

Format-
-Paper should be a four to five paragraph research paper.
-The paper should be approximately two pages in length, double spaced, using one inch margins and a font size of 12.

Economic Requirements
1. Include one statement in the paper that is an economic principle. Indicate the economic principle with(EP) at the end of the statement.
2. Include one statement in the paper that is a positive economic statement. Indicate the positive economic statement with(PES) at the end of the statement.
3. Include one statement in the paper that is a normative economic statement. Indicate the normative economic statement with(NES) at the end of the statement.

-Need 3 sources but can’t used “Wikipedia sources”.
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The Minimum Wage Should Be Increased
Minimum wage protects workers, especially in the low (unskilled sector), from exploitation and unduly low wages from employers. It is a tool that can be effectively utilized to help cater to minimum living standards for all persons employed. It is a form of protection that can guarantee a better/ quality of life for all. An increase of minimum wage, at least in the macro sense, would raise individual workers’ earnings and cater for a greater family income in most low-wage communities, lifting families out of poverty. Still, there is a potential that it may result in many low-wage workers losing jobs, resulting in greater economic inequality.
Generally, increasing the minimum wage would result in better living standards. Researchers indicate that increasing minimum wage through unsustainable policies may increase unemployment as it situates a price above the demand for labor (PES) (Card and Krueger). On the contrary, a reasonable increase in the minimum wage would benefit the workers as it becomes a more inclusive tool to balance and prevent the runaway economic inequality within society. Situating minimum wage increase in a more reasonable position can increase employment, enhance growth, and cater to a more efficient labor market (Card and Krueger). Workers become motivated, and productivity within the job sector increases for the organization’s benefit as more people feel included or protected from poverty.
Increasing minimum wages effectively bring about more economic equality within the society. It also raises economic activities, especially in low-class areas, as it raises the spending capacity for most individuals. Anker outlines that an increase in minimum wage “help ensure a just and equitable share of the fruits of progress to all, and a minimum living wage to all who are employed and in need of such protection.” This plays a great factor in lifting the worker’s motivations, ensuring efficiency and increased productivity within their respective fields, as they feel included and have more income to support another aspect, such as paying for housing, food, education. It stimulates upward social mobility and ensures general social growth (NES).
A generally accepted definition of what minimum wage entails would show a greater concern for workers on the part of the government. Anker outlines that as it is, governments and employers have not attempted to set a framework for a consistent hike in the minimum wage, driving millions to poverty, job dissatisfaction, and a higher level of job loss. Large corporations and employers as such come to have monopsonistic powers. This they use to stifle employees. Gindling outlines that raising the minimum wage would increase poverty if job losses in the formal sector are high. But the contrary is also true; by reducing monopsony in the labor market, job retention will grow, and minimum wage hikes would lower poverty.
When poor or low-skilled workers get more minimum wage, they have more to spend, and in a sense, stimulate the demand for goods and services and give them more leverage against employers. Card and Krueger outline that in such cases, workers come to have more bargaining power against their employers, and labor markets monopsony reduces greatly (EP). This is a statement that other researchers agree with, stating that an increase in minimum wages reduces labor market domination by employers in favor of employees, exerting positive effects on labor market outcomes by reducing employers’ excessive market power (Rocheteau, Guillaume and Tasci)—overall tilting the power within the labor market to a more balanced field, which is beneficial for workers as well as employees.
Works Cited
Anker. R. “Conditions of Work And Employment Programmes: Estimating A Living Wage: A
Methodological Review” International Labour Office – Geneva.
http://www.ilo.int/wcmsp5/groups/public/—ed_protect/—protrav/—travail/documents/publication/wcms_162117.pdf
Card and Krueger, Myth and Measurement: The New Economics of the Minimum Wage (1995)
Gindling. T. H. “Does increasing the minimum wage reduce poverty in developing countries?”
https://wol.iza.org/articles/does-increasing-the-minimum-wage-reduce-poverty-in-developing-countries/long
Rocheteau, Guillaume, and Murat Tasci,. “Positive and Normative Effects of a Minimum
Wage,” Federal Reserve Bank of Cleveland, (2008) Working Paper no. 08-01

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