Minimum Wage/ Living Wage Movement

INTRODUCTIONMany economic theories have been proposed to discuss the impact of lower limit compensation on wear down food food trade . The proceedings of the labor market is based on the exchange of resources between the employee and employer the employee receive take in return for their labor go to the employer . Labor market is considered to be most emulous market where the ceremonious market worth is much closer to the value of the product . so , the employee is likely to receive marginal value , in the competitive market (excluding the factor of minimum enlist . Therefore minimum prosecute laws have been introduced which foresee crisis of unemployment , if fewer employers are implicated to hire labor , where as more people are entrusting to offer their services . Therefore , the law intends to respect the equilibrium , to avoid social and economic turmoilThe amount of labor supplied by the workers is directly proportional to the titulary wage , a certain adjoin in the wage , forecast improver in the labor supply . The observation is based on the assumption that an employee hired at a low wage will prefer to consume leisure and forego struggle , a slight increase in the nominal range , it becomes trying to practice leisure and avoid labor , on that pointfore there is an increase in the build of workers wiling to offer labor . The descent between the labor supplied and nominal wage is function of antithetic variables including bell . A substantial increase in the price aim will reduce the number of workers , at tout ensemble(a) wages (Wascher , 1995LABOR MARKET AND WAGESThere exists an inverse relationship between the nominal wage , and the amount of labor demanded by the organizations . A substantial increase in the wages is likely to compel the organizations to reduce recruitment schemes . The relationship has been derived on the basis of an assumption that the organization prefers obstetrical delivery for increased proportion of profitability i .e . such level of production is aimed by the organization which increases the profit i .e .

the dissimilarity between expenses and revenue . The revenue is based on the price of an item , and quantity of the items sold (Christopher , 2005 . The expanses include the amount of wages , which is based on the labor and services . Therefore , the party will prefer to maintain a minimum room access level to secure profit , on the basis of decline in the wages , as more workers are diligent , the labor wage increases which turn the organization less juicy . The price factor may compel the organizations to recruit the employees for all wage levelsMINIMUM WAGES AND LABOR MARKET : IMPLICATIONSIt has been predicted that minimum wage laws are expected to increase unemployment , if minimum wage is established above equilibrium wage . It is because , a large number of employees will be interested in offering their services in exchange for loftyer wages , on unlike on small and limited number of such opportunities will be available . Also , the organizations will be detailed about the recruitment scheme , and ensure that only nearly qualified people are hired on high wages , therefore there is...If you want to get a full essay, order it on our website: Ordercustompaper.com

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