Minimum Wage Monopolies In America
The supports also argue that an increase in wages incentivizes more people to work who would not have entered into the job market at low rates. Also those that use to have to work extra hours now can reduce the time they participate in the labor market. The hours they give up can be absorbed by more worker, so more people will be participating in the labor market. And lastly supporters say the potential losses in jobs because of the increase would not be as bad as the benefits that the ones still working would receive. “In the United States where job turnover is and durations of joblessness relatively short, this is unlikely to be a serious problem. Low-paid workers will effectively ‘share’ the benefit of higher-paid minimum wage through normal mobility and turnover.” (Freeman p 642) The big idea of supporters is that the minimum wage guarantees that those low skilled workers will be paid fair wages, and that the rest of society will make up for the difference. It a redistribution method that the majority of the populations …show more content…
One group that was the hardest hit from this law way young unskilled workers. The teen and entry level unskilled workers could no longer compete in the labor market because they were inefficient. The other groups that were more hurt were women and non-white workers because they all faced challenges competing for equal wages.
On boundary that prevent them from competing in the labor market was the formation of labor unions. Labor unions only allowed white males to join and they used their size and power to control the wages paid to their members. While these group bettered themselves that hurt those who were not part of the