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What Happens When the Minimum Wage is Raised?

ArticleID 166  
Writer Isaac Thuku
Category Personal Article

With the current economic change, it is evident that the demand for an increase in minimum wages is on the increase. It is therefore important to address the impact brought about an increase in minimum wage. Does an increase in minimum wage help workers?

The impact of increasing wages in reference to employment does not leave much to discuss. This is because there is no impact or the impact is significantly too small to cause significant change in employment. When looking at impact on employment, small businesses are not affected at all. This is more so in small towns where the number of workers is significantly small. You will notice a slight increase in demand for employment in larger towns and cities. The better pay is capturing individuals attention and more people are seeking for employment. Seeking for employment does not however mean that they will get readily available employment opportunities. The pay is better, it will attract potential workers but the posts for employment are not readily available thus the small impact on employment if any is noted.

According to research, some of the recognized effects were that employees turn over rate reduced. With better pay, more workers kept to their jobs. The restaurants saw an increase in the prices of commodities in small proportions since many workers frequent these areas. In addition, it motivates workers. In turn, workers increase productivity as they are content with their pay. An increase in productivity reflects on the rate of return for the business.

A negative impact comes with the increase in food commodities. Due to this, restaurants increased their food prices. The aspect of increasing wages according to workers is to help them secure a better life. In this, by increasing food prices, the increase seizes to be significant. This is because it goes to pay the same bills leaving the workers at the same position they were.

According to research, you will note that with an increase in minimum wage will impact workers in two ways. those who are skilled will retain their positions and enjoy their wages. Those who are somehow challenged may lose their jobs in an attempt for businesses to adjust their expenditure. While others increase their wages, others will be cut off their’s.

An increase in minimum wage carries both positive and negative results depending on which side of the table you stand. Economists agree that it will boost income and lower worker turnover.
What Happens When the Minimum Wage is Raised?
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