Microeconomics

negligible earnings quite a littlenister be defined as the lowest wage that an employer is required to pay an employee who works for them. token(prenominal) hire usually piece of tail be found in contract or legislation by the government. Although the minimum wages has been set, some employers can also ramp up their own laws. Minimum wages has its makes and costs. We can stand on a antithetical look at the position of the minimum wage. We start with the employees position to view the benefits and costs of minimum wages. First benefit is ensures minimum standard of living. Everybody needs money to feed themselves as well as their families. We can see that in our society, more or less workers argon working parents. Because of minimum wages, the labor will be sure of the reward that a firm pays them and they will not be at the mercy of the employers who are always solidifying upon exploiting them. Moreover, this can also reduce the national poverty rate. reciprocal ohm benefit is effect on efficiency. Higher wages can increase workers incentive to work harder and more productivity. When the worker is equal to(p) to maintain the standard of living, they will work harder for the employers and can make a profit for the society. A minimum wages can increase the participation rate as their work pose greater day by day. Third benefit is that inefficient employers are eliminated.

When the employers pay his worker low wages because of the employers are not able to manufacture the goods at the competitive price, past the employers must close down his concern when the minimum wages is fixed. This kind of employers will be eliminated and will not be active the total production of the community. Every worker wants to work for a company or organization that are stable and can provide stability. So, if such kind of employers exists on the society, earlier they leave, the ruin it is. Fourth benefit is unemployment rate will be trim back in a country. A minimum wages could learn a positive effect on employment. If a company has Monophony power, they can... If you want to get a full essay, ramble it on our website: Orderessay

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