Minimum Wage Should Be An Excellent Resource For The Economy Essay example

1306 Words Nov 30th, 2016 6 Pages
Some scholars suggest that increasing the minimum wage would be an excellent resource to the economy, however Lopresti and Mumford (2016) raised the concern on how minimum wage increase can affect the wages of low-wage workers relative to the wage of workers with no minimum wage increase. The focused is on how the effects on minimum wage increase can have on wage distribution and size. Their data included the current population survey, which group data between August 2008 and June 2008.The samples included employed individuals who were 16 and older, with a 0.10 percent below the minimum wage, and self- employed workers. Nearly 64% of the individuals experienced a minimum wage increase, but there was a substantial difference in the size of the increase. More than 16% experienced a small minimum wage increase of less than 5% of the initial minimum wage, while more than one-tenth experienced a very large increase of more than 20% of the initial minimum wage. These results concluded that a small increase may cause workers to experience less wage growth. Raising the minimum wage could disadvantage low-skilled workers.

A minimum wage increase would hurt businesses and force companies to close, according to Gregory Karp, an author and journalist of 20 years, and also has a weekly column that appears in the Chicago Tribune and Baltimore Sun, quotes Robert Bruno, a professor of labor and employment relations at the University of Illinois at Chicago about the minimum wage debate.…

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