A prove from the body in the United States submit that problem of low jobs is caused by the increase of minimum wage workers. (Card et.al 1993), The high indication that minimum wages shrink employment is found from research that focuses on the lowly-skilled workers. Jobs that need little training have a minimum wage, thus causing more demand. The likely advantages of optimizing minimum wages stem from higher wages for afflicted individuals who grew up in poverty or low-standard families. A minimum wage increase can demoralize businesses from employing least-skill employees willing to be paid minimum wages. The minimum wage laws shrink the unemployment of least-skilled workers; thus, they are not able to free lunch for the less fortunate families, but rather rathe the exploitations of unskilled workers. Even though the findings in the research are not the same in different businesses, information found shows that wage rates shrink the employment opportunities that low-skilled workers can access. In the united states of America
In many nations, minimum wage increases have become the norm (Alatas et al., 2003). Even though minimum wage policy is designed to ensure a basic quality of income, it is undermined by unforeseen consequences. Many studies show that salary boosts from minimum wage rises are balanced by higher unemployment for just some employees. Furthermore, while the research on distributional impacts is scarce, it does not indicate successful increases in the minimum wage, although certain subgroups may gain. Business income tax breaks, for example, seem to be more helpful at assisting reduced families.
The fundamental argument for a minimum wage is that it assists reduced households in earning enough money. However, it can deter firms from hiring reduced, low-skilled employees. There will be haves and have nots if minimum wages limit hiring for reduced employees. The location of the winning and losing along the range of average earnings determines if a minimum wage lowers hardship or aids low-income households. The impact on jobs seems crucial: if raising the minimum wage does not eliminate jobs, then that would be a “free lunch” for the public that helps alleviate poverty, even if greater households benefit as well. Labor economists have long researched wage levels to see if they diminish employment. This article examines the available evidence from the United States and the validity of the research methods used to capture the results of the minimum wage on employment.