Firstly, there are some drawbacks of this policy towards both employers and employees. The increase of the disemployment rate is one of the most serious adverse effects of the minimum wage. Workers, who are at the lower end of salary distribution are mostly affected when …show more content…
There are some of the adolescents tend to pursue their money through illegal means rather than participate to the workforce and caused a serious crime rate in community. As the economic incentive of the minimum wage, many teenagers may resume their work and this results a low crime rate. For instance, the number of serious drug offences, serious assault and robbery has reduced after the establishment of the minimum wage. A thesis from Harvard University also concludes that the arrest rate of adolescents may reduce 1-3% if the minimum wage is increased by 10% and they also predict that there will be four serious drug offences less per youth annually (Kallem, 2004). Hence, the minimum wage can encourage teenagers to join the workforce and reduce the crime