Is Minumum Wage a Success

What are the Advantages and Dis gains of a nominal wage? Has it been a victor in the UK? There are many factors that influence the frugality of a country but also the economics of a business: Market forces, scarcity, costs, labour, macroeconomics, money, external influences and competition to name a few. These are factors that may change, and force choices to be made to match a business or country grow. Economics and so is about making choices to maximise satisfaction. The factor that will be discussed is borderline wage, a decision made by the governing where a set wage should be paid to an employee that change upon their age. Many countries have a minimum wage that is establish on a percentage of average income. The first strain at minimum wage in the UK was by the yield councils in 1992 where they imposed minimum wage limits on employers in industries where wage were often low, for example; hairdressing and catering. The conservative organisation abolished this in 1993, favouring the effects of a competitive market where wages are set by forces of supply and demand. In 1999 the minimum wage of £3.60 was introduced to this market. The plat below shows supply and demand curves for minimum wage in a competitive labour market.

[pic] The diagram shows the equilibrium wage and employ as We and Qe respectively. The effect of a minimum wage, shown by Wm and the number of low skilled workers that employers manage to employ (Qm) is less than the number of people wiling to work at that wage (Qs). Since employers will not employ more than they screwing afford, the employment falls to Qm. The minimum wage therefore reduces the employment. The flip of the demand curve determines the total income of workers and whether it will be greater or smaller than the equilibrium value. The flatter (more elastic) the demand curve, the more likely total income would fall. We can see above that an advantage of minimum wage would be those kept in employment would gain income however the... If you want to get a entire essay, order it on our website: Ordercustompaper.com

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