Raising the Minimum Wage

Term Paper # 100536

Business
Economics > Labor
Labor Studies

An analysis of the history of minimum wage increases in the US and whether changes are necessary in the current situation.

1,054 words () | 6 sources | MLA | 2008 United States

Paper Summary:

This paper discusses when and how minimum wage should be increased for employees. It looks at the history of minimum wage increases and then discusses the benefits and difficulties of wage increases for employers. The paper also looks at whether the minimum wage has finally reached an acceptable level which can now be deemed a livable wage or whether an increase in wages is necessary.

Table of Contents:
Introduction
Doubled Minimum Wage Results
Market Demand Curve
Company Affects
Conclusion

From the Paper:

"Unfortunately when wage rates rise it must be performed across all employees within a company. This will result in a significant outlay for any corporation when raises are given or wage rates change. When such changes occur there is a significant change in the lowest hourly rate which will eventually follow through to other positions including those occupied by the skilled labor forces (Edwards 10). When such increases occur margin levels must also increase in order to support such increases in the corporate salary expenses. However when such increases occur, it is inevitable that the same number of employees will continue to populate the company as what did prior to the wage increases. The fact is that wage is usually not directly proportionally to increases in margin. The aggregate unemployment rate has varied between 4% and 8% over a period of 20 years (Overall Unemployment Rate in the Civilian Labor Force). However, the numbers of employees in the skilled labor force have increase by a significant number of employees."

Sample of Sources Used:

Edwards, Gregg M. "Raising the Wage Will Limit Opportunity." NJBIZ 17 Nov. 2004. 10.
"Federal Minimum Wage Rate." Information Please Database, Pearson Education, Inc. 21 Nov. 2006. <http://www.infoplease.com/ipa/A0774473.html.>
"Markets for Resources." Drexel. 21 Nov. 2006 <http://william-king.www.drexel.edu/top/prin/txt/factors/OH.html>.
Murray, Rothbard. "Outlawing Jobs: The Minimum Wage, Once More." Making Economic Sense. 20 Nov. 2006 <www.mises.org/econsense/ch36.asp>.
"Overall Unemployment Rate in the Civilian Labor Force, 1920 to 2006." Information Please Database, Pearson Education, Inc. 21 Nov. 2006. <http://www.infoplease.com/ipa/A0104719.html>.