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5 page research paper on the pros and cons to minimum wage.Paper must be in AP format

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5 page research paper on the pros and cons to minimum wage.Paper must be in AP format
Answered Same Day Dec 22, 2021

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Robert answered on Dec 22 2021
126 Votes
Introduction
6
PROS AND CONS TO MINIMUM WAGE
Introduction
The minimum wage is the legal minimum wage an employer has to pay to the employee for the service they render. It is established by legislation by the government or by a contract. The objective of setting minimum wage is to protect labors from exploitation by their employers and enable them to afford the basic need of their life. The level of minimum wage differs from nations to nations and even it varies within the country. Differences of views exist among the critics regarding the pros and cons of minimum wage. Those who support the minimum wage argue that minimum wage will lead to improvement in the standard of living of labor class and help in reduce the poverty. Moreover, they are of the view that, a floor price for the labor service will boost morale of the working class and help the business to become more efficient. Those who oppose the legal minimum wage have the different view and say that since a minimum wage establishes a price floor on wage. They argue against the minimum wage by expressing that price floor results in dead weight loss which means fixing the minimum wage ends up in economic inefficiencies. They go further by saying that minimum wage might compel the employers to hire fewer employees and will result in increasing the unemployment. Neo classical followers content that a floor wage increases unemployment especially among unskilled workers with low productivity. Thus minimum wage leads to excluding some groups particularly unskilled, inexperienced and physically challenged workers from the labor market.
Pros and corns of increasing minimum wage
Statutory minimum wage regulation was initially introduced in the Australian state of Victoria in 1894. Minimum wage laws states the floor price for labor that may be paid by employers. The Fair Labor Standards Act is the first of its kind which the U.S Congress instituted in 1938. Intention of passing this act was to ensure workers a minimally adequate standard of living. The Fair Labor Standard Act, which established a minimum wage of $2.25 per hour. Since then minimum wage has been raised many times. The minimum wage was $3.35 in 1981 and $4.25 in 1991, and it had been$5.15 since 1997. Coverage of the minimum wage was extended over the years, so that today 85% of all workers in the United States are covered. $7.25 an hour is the prevailing minimum wage in the U.S. Some states minimum wage is higher than the cu
ent federal level and San Francisco has the highest minimum wage in the country at $10.55 an hour.
Wages of skilled workers normally lies above the minimum wage, therefore skilled workers are generally not affected by minimum wage laws. But its most impact is felt by unskilled workers. Analysis of...
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