Microeconomics Research Paper

1622 Words Dec 8th, 2012 7 Pages
Nicholas Benyola
Professor Mansourian
Econ 201- 25
17 May 2012
Microeconomics Research Paper
Minimum Wage

In the United States, minimum wage has remained at a low number for several years. Minimum wage is defined as the lowest possible income that an employer can legally pay an employee. This ensures that all people are fairly paid and not defrauded by companies or businesses. Minimum wage is considered a price floor and the minimum wage laws determine the lowest price possible that any employer must pay for labor. In an economic model, the quantity of supplied is greater than the quantity demanded and the minimum wage is above equilibrium price and quantity. Minimum wage prevents labor supplied and labor demanded from moving
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While an increase of a few thousand dollars per year would rarely lift a person or a family out of poverty, it could ease the struggle to pay for groceries, child care or rent, and it adds meaning and dignity to labor. A higher minimum wage is not enough, but it is very essential for the working poor.
Minimum wage was created to keep businesses from taking advantage of their employees. Most of the workforce making minimum wage is young adults because companies feel that they can take advantage of them. Of the total affected workers, women suffer the most which is evidence that companies still have gender discrimination in the workplace. Companies are not only paying people small amounts of money but are also treating the women of America unfairly. If discrimination ended in the workplace then businesses would grow because they would have a more diverse workplace. Employees who are earned a higher wage would take their job more seriously. They would call in sick less often and would be more productive on the days they are at work. An employee working for a lower wage may spend a great deal of time job hunting, looking for a position that pays more but if employees are already earning a higher wage, they would not have to be searching for a higher paying job. This would reduce employee turnover for companies. John Montgomery, economic analyst for ABC states that, “From the business

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