Minimum wage laws represent an example of price control. Price controls limit the amount of transactions and distort the value of goods and services that are exchanged in the market place. In the instance of minimum wage, the costs are believed to mainly take the form of reduced output and employment, whereas the gains accumulate mainly to those who keep their jobs at a wage rate that is high. The majority of economists suppose that the cumulative losses associated with price controls, which include minimum wage laws, surpass the cumulative gains. However, most democratic systems are characterized by political involvement into labor markets. The labor demand depends negatively on the wage. The imposition of legal minimum wage might make the
